The Percentage Change in fiRm (Or Project) Operating Cash flOw

question 334

Multiple Choice

The percentage change in firm (or project) operating cash flow relative to the percentage change in quantity sold is called (the) :

• A) Cash flow marginal profit.
• B) Degree of operating leverage.
• C) Gross profit.
• D) Net profit.
• E) Financial break-even.

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Definitions:

Credit Card

A small plastic or metal card issued by a bank that allows the holder to purchase goods or services on credit.

Rate Of Interest

The percentage charged on a loan or paid on an investment over a specific period, usually annually.

Monthly Payments

Regular payments made once a month, typically in the context of loans or mortgages.

Loan

A sum of money borrowed by an individual, business, or other entity from a lender that is expected to be paid back with interest over a specified time period.