The Main Reason for the Recent Migration of a Large

question 60

Multiple Choice

The main reason for the recent migration of a large number of firms from public-to-private ownership is

• A)blue-sky laws.
• B)Sarbanes-Oxley Act.
• C)International Accounting Standards (IAS).
• D)advent of shelf registration.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production output, including expenses like labor and material costs.

Operating Leverage

A financial ratio that measures the degree to which a company can increase operating income by increasing revenue, highlighting the impact of fixed costs.

High Debt

A situation where a company or individual carries a large amount of debt relative to their assets or equity.

Breakeven

The point at which total costs equal total revenue, resulting in neither profit nor loss.