Which of the Following Statements Is False? as a Firm

question 9

Multiple Choice

Which of the following statements is false? As a firm increases its operating leverage for a given quantity of output, this

• A) changes its operating cost structure.
• B) increases its business risk.
• C) increases the standard deviation of its EBIT.
• D) increases the variability in earnings per share.
• E) decreases its financial leverage.

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Definitions:

Intrinsic And Extrinsic Rewards

Satisfaction and motivation that come from both internal personal satisfaction (intrinsic) and external compensation or recognition (extrinsic).

Software Company

A business entity that specializes in developing, distributing, and maintaining software applications or systems.

Maslow's Theory

A psychological framework suggesting that human beings have a hierarchy of needs ranging from basic physiological needs to self-actualization, motivating their behavior.

Extrinsic Rewards

Benefits provided by an external source, such as an employer, to motivate individuals, including financial incentives, bonuses, and other non-inherent rewards.