Answer:
e. Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.
Explanation:
Risk management is not anyhow related to Bonus receipts of managers and defer tax payments. However, all other options i.e.
a. Risk management can increase debt capacity.
b. Risk management can help a firm maintain its optimal capital budget.
c. Risk management can reduce the expected costs of financial distress.
d. Risk management can help firms minimize taxes
are the ways risk management can be used to increase the value of the firm.
Answer:
The risk management not used to increase the value of a firm is Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments
Explanation:
Risk management is the description, evaluation, and prioritization of risks accompanied by coordinated and cost-effective utilization of sources to reduce, monitor, and manage the possibility or consequence of unfortunate circumstances or to increase the realization of opportunities.
Reasons:
To learn more about risk management, refer:
