Choose the Word or Phrase in [ ] Which Will

question 163

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Dividend income is taxed [as ordinary income | at capital gains rates].

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, due to fixed costs within a company's operating structure.

Variable Costs

Charges that shift in alignment with the volume of business activity.

Operating Income

Income generated from a company's primary business operations, excluding revenue from investments and other non-operational sources.

Sales Mix

The combination of different products or services that a company sells, represented in terms of the proportion each contributes to total sales.