Interest Expense Creates Magnification of Earnings Through Financial Leverage Because

question 46

Multiple Choice

Interest expense creates magnification of earnings through financial leverage because:

• A)the interest rate is variable.
• B)interest accompanies debt financing.
• C)the use of interest causes higher earnings.
• D)interest costs are cheaper than the required rate of return to equity owners.
• E)while earnings available to pay interest rise,earnings to residual owners rise faster.

Recognize and differentiate between organizational citizenship behaviors and counterproductive work behaviors.

Understand the role and significance of corporate social responsibility within organizations.

Comprehend the concept and components of High-Performance Work Practices (HPWP) and their relevance in leveraging human capital.

Define intellectual capital and its importance to organizational knowledge and success.

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Definitions:

Coupons

Vouchers or codes that offer a discount or rebate on the purchase of products or services.

Arbitrary Approach

A method based on individual judgment or preference rather than objective logic or system.

Promotion Mix

The combination of promotional tools used by an organization, including advertising, sales promotion, public relations, personal selling, and direct marketing.

Objective And Task

A method in advertising and marketing involving the setting of objectives and determining the tasks necessary to achieve them.