Operating leverage refers to the presence of _____.

A. fixed-income securities
B. beta risks
C. firm-specific risks
D. variable operating costs
E. fixed operating costs


Answer: E

Business

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Coupons permit marketing managers to price discriminate, that is, charge different prices to different households

Indicate whether the statement is true or false

Business

Which of the following would not be considered a subsequent event to financial statements?

a. A major customer declares bankruptcy subsequent to the balance sheet date, but prior to issuing the statements. This event was not considered on the balance sheet date. b. A major purchase of a subsidiary to the balance sheet date, but prior to issuing the statements. c. Substantial debt incurred subsequent to the balance sheet date, but prior to issuing the statements. d. Substantial stock issued subsequent to the balance sheet date, but prior to issuing the statements. e. Hiring of employees for a new store, subsequent to the balance sheet date, but prior to issuing the statements.

Business

A _____ is a partnership arrangement that includes at least one general partner and at least one limited partner.

A. general partnership B. limited partnership C. joint liability partnership D. mutual-bondage partnership

Business

A fidelity bond insures against losses caused by the dishonest performance of duties by a personal representative

Indicate whether the statement is true or false

Business