The systematic risks that are impacted by the firms


1. Vernan Jet Services files a suit against the Wing Gate Flyers Club, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the considera¬tion if

a. there is a large disparity in the amount of consideration exchanged.

b. the consideration involves the performance of services.

c. something of value passed between the parties.

d. the consideration is worth less than $100

2. The systematic risks that are impacted by the firm’s operations and its capital structure are ______ and ______ respectively?

a. Financial risk and business risk

b. Systematic risk and idiosyncratic risk

c. Beta risk and alpha risk

d. Business risk and financial risk

e. Financial risk and beta

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Financial Management: The systematic risks that are impacted by the firms
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