Which of the following statements about business risk and financial risk is least accurate?
A) |
The greater a company's business risk, the higher its optimal debt ratio. | |
B) |
Business risk is the riskiness of the company's assets if it uses no debt. | |
C) |
Factors that affect business risk are demand, sales price, and input price variability. | |
The greater a company’s business risk, the lower its optimal debt ratio. |