Which of the Following Is a Positive Statement

question 591

Multiple Choice

Which of the following is a positive statement?

• A) Our planet is warming because of an increased carbon dioxide buildup in the atmosphere.
• B) A minimum wage of $5.50 per hour is a shame for a rich country like the United States.
• C) Both these statements are positive.
• D) Neither of these statements is positive.

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Definitions:

Break-Even EBIT

The level of Earnings Before Interest and Taxes at which a company covers all its operating expenses and does not make a profit or loss.

Bond Issue

The process by which a government or corporation raises funds by selling bonds to investors, which are then repaid with interest at a future date.

Coupon

The interest rate stated on a bond, representing the amount of interest paid to bondholders on an annual basis.

Interest Tax Shield

The reduction in income taxes that results from deducting interest payments on debt from taxable income.