Which of the Following Statements About Leverage Is Not Correct

question 51

Multiple Choice

Which of the following statements about leverage is not correct?

• A)Measuring the degree of operating leverage is a form of measuring risk.
• B)Decisions about the use of debt or equity affect a company's financial leverage.
• C)Decisions about whether to use fixed or variable costs affect a company's operating leverage.
• D)The degree of financial leverage measures the extent to which fixed costs are used to operate the business.

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Definitions:

Cerebral Hemispheres

The two halves of the brain, divided into left and right sides, responsible for controlling different functions and cognitive processes.

Commissural Fibers

Axonal connections between the hemispheres of the brain, facilitating communication.

Hemispheres

The two halves of the brain, each specializing in different functions but working together to process information.

White Matter

Brain tissue composed of myelinated nerve fibers (axons) that connect different brain areas and transmit nerve impulses.