Which Type of Analysis Assists with Understanding Why Something Happened

question 23

Multiple Choice

Which type of analysis assists with understanding why something happened during the third step of the AMPS model,performing the analysis?

• A)Descriptive.
• B)Diagnostic.
• C)Predictive.
• D)Prescriptive.

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Definitions:

MM Model

The Modigliani and Miller theory, which proposes that under certain conditions, the value of a firm is unaffected by its capital structure.

Corporate Taxes

Taxes imposed on the income or profit of corporations.

Personal Taxes

Personal taxes refer to taxes levied on the income, property, or wealth of individuals, as opposed to taxes imposed on companies or other legal entities.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, constituting how a firm finances its overall operations and growth.