The 100% Rule Does Not Imply That the Optimal Solution

question 28

True/False

The 100% Rule does not imply that the optimal solution will necessarily change if the percentage exceeds 100%.

---

Definitions:

Sales

The transactions involving the exchange of goods or services for money, representing a critical source of revenue for businesses.

Net Income

This is the amount of profit left after all operating expenses, taxes, and interest are deducted from total revenues.

Taxes

Mandatory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the proportion of assets financed with debt.