In the Context of Thwarting Computer Abuse, Which of the Following

question 40

Multiple Choice

In the context of thwarting computer abuse, which of the following is true?

• A)It is not important to enlist the support of top management
• B)Many top managers are not concerned about computer abuse
• C)Computer crime mostly means controlling computer hardware
• D)Most computer crime happens because of a failure of controls, not an absence of controls

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Definitions:

Degree of Financial Leverage

This metric quantifies the sensitivity of a company's earnings per share to its fluctuations in operating income, based on the structure of its capital.

Net Income

Represents a company's total earnings, reflecting the amount of revenue that remains after all operating expenses, taxes, and preferred stock dividends have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a periodic payment of interest on debt.

Unlevered Cost

The cost of funding a project or investment without taking into account the effects of leverage, reflecting the cost of equity.