The Degree of Combined Leverage Is the Percentage Change in Earnings

question 155

True/False

The degree of combined leverage is the percentage change in earnings per share that results from a one percent change in EBIT.

---

Definitions:

Well-Learned Responses

Reactions or behaviors that have been practiced and reinforced over time, becoming automatic or habitual.

Social Loafing

is the phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Well-Learned Responses

Behaviors that have become automatic or habitual through repeated practice or reinforcement.

Social Loafing

A phenomenon in which individuals decrease their effort when working in a group compared to when working alone.