A Likert Scale Is an Example of What Kind of Measurement

question 52

Multiple Choice

A Likert scale is an example of what kind of measurement?

• A) nominal
• B) ordinal
• C) interval
• D) ratio

Understand the concept and impact of business risk on operating performance.

Calculate the breakeven point and understand its significance in business operations.

Interpret and compute financial ratios and leverages such as EPS, DFL, and ROE.

Determine the effects of financial leverage on a firm's financial performance.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing as scale increases.

Diseconomies of Scale

The phenomenon where production costs increase as a firm expands output, leading to reduced efficiency.

U-Shaped Long-Run Average Cost Curve

This describes the phenomenon where, over time, average costs first decrease with increased production, hit a minimum, and then increase with further production increase, forming a U-shape.

Minimum Cost

The lowest possible expense at which a particular set of goods or services can be produced or acquired.