A Study Is Released That Shows That a Majority of Americans

question 48

Multiple Choice

A study is released that shows that a majority of Americans want to keep the penny in circulation.It is learned that the study was conducted by the zinc industry (most pennies are made with zinc) .This illustrates:

• A)there are ethical issues in secondary data;some secondary data are not objective.
• B)it is difficult to conduct accurate research when you are dealing with emotional issues such as keeping the penny in circulation.
• C)even though the study was sponsored by the zinc industry,the research company conducting the research would not be unethical in reporting the data.
• D)research results may be used to determine national policy.
• E)the FTC protects the public from manipulations of fact.

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Definitions:

Operating Leverage

A measure that evaluates the extent to which a firm can increase its profits by increasing sales, highlighting the fixed versus variable costs in operations.

Financial Break-Even

The point at which total revenues and total expenses are equal, resulting in neither profit nor loss.

Required Return

The minimum expected return by an investor for undertaking an investment, reflecting its risk level.

Financial Break-Even

The point at which total revenues are equal to total fixed and variable costs, making the net income zero.