According to James Van Horne the Functions of Finance

question 50

True/False

According to James Van Horne the functions of finance & accounting comprise three decisions: the investment decision, the financing decision, and the dividend decision.

Recognize the potential severe consequences of unethical decisions for businesses and their associates.

Comprehend the impact of organizational structure on ethical behavior within companies.

Understand the role of boards of directors in maintaining organizational ethics and shareholder interests.

Identify various levels of corporate social responsibility and examples of actions at each level.

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Definitions:

Sales Mix

The combination of different products or services that a company sells, influencing overall sales volume, revenues, and profits.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in zero profit or loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed versus variable costs a company has.

Variable Costs

Expenses that change in proportion to the level of production or sales activity.