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:

Verizon's Core Values

The fundamental beliefs and principles that guide Verizon's business practices, decision-making, and company culture.

Put Profit First

A business philosophy focusing primarily on increasing profits and financial performance, often ahead of other objectives.

Act with Integrity

Conducting oneself according to moral and ethical principles, being honest and having strong moral uprightness.

Stakeholder Pressures

The demands or expectations placed on an organization by individuals or groups with an interest in its activities.