1. The Z (from a Z-table) is the number of standard deviations a number falls from the mean.
A. True
?B. False
2. Management inefficiencies can contribute to an increase in business risk.
A. True
B. False
3. Financial risk:
A) is inherent in the use of financial leverage.
B) can be avoided by borrowing only on insured loans.
C) exists only when financial leverage is unfavorable.
D) is inversely related to the amount of financial leverage employed.