Which of the following statements about financial leverage is true?
A) Financial leverage involves the incurrence of fixed operating costs in the firm's income
stream.
B) Financial leverage is the responsiveness of the firm's EPS to fluctuations in EBIT.
C) Financial leverage reduces a firm's risk.
D) Financial leverage is the responsiveness of the firm's EBIT to fluctuations in sales.
B
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________ are considered one's secondary connections.
A. Professional friends B. Relatives C. Friends of friends D. Coworkers
Which of the following is an example of direct-response broadcast advertising?
A. An e-mail offering a trial subscription to an online music station B. A catalog featuring children's clothing C. A television infomercial for exercise equipment D. A billboard that asks viewers to shop at a furniture store E. A telemarketing call selling health insurance schemes
You have an online electronics business and you've set up an ad group for digital cameras. What keywords could make this ad group as effective as possible?
a. Brand names of your top competitors' cameras b. Words from headlines on your website, like "electronics" and "sale on cameras" c. General phrases related to photography, like "camera lens" and "camera base" d. Words in your ad text, like model names of digital cameras
A provision in the law that compels accrual basis taxpayers to pay a tax on prepaid income in the year received and not when earned is consistent with generally accepted accounting principles.
Answer the following statement true (T) or false (F)