The Technique Which Takes a Single Variable and Examines the Effect

question 36

Multiple Choice

The technique which takes a single variable and examines the effect of changes in that variable on the likely performance and position of the business is known as:

• A) sensitivity analysis.
• B) historic analysis.
• C) performance analysis.
• D) management analysis.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Pension Plans

Financial programs set up to provide income to individuals during retirement, usually funded by employers or the government.

Low-Dividend Policy

A strategy adopted by companies to retain more earnings by distributing lower dividends to shareholders, typically to reinvest in the company's growth.

Corporate Investors

Organizations that invest in other companies’ securities, often for strategic purposes beyond mere financial gain.