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Question 16 Not yet answered Marked out of 1 P Flag question Which of the...

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Accounting

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Question 16 Not yet answered Marked out of 1 P Flag question Which of the following best describes the potential impact of business risk on Earnings Quality? Select one: a. Higher earnings quality is linked with companies more insulated from business risk. While business risk is not primarily a result of management's discretionary actions, this risk can be lowered by skillful management strategies. b. A higher level of earnings quality can be observed in the industries with high business risk, because higher risk means higher returns O c. Business risk is mostly composed of financial risk factors and it has minimal effect on earnings quality. O d. For managing business risk, the managers almost have no discretion, therefore business risk is not directly or indirectly related to earnings quality. Question 17

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