Other Factors Being Constant, Higher Fixed Financial Costs Mean

question 108

Multiple Choice

Other factors being constant, higher fixed financial costs mean:

• A) higher financial leverage
• B) higher operating leverage
• C) lower combined leverage
• D) the degree of financial leverage is equal to 1.0

---

Definitions:

M.B.A.s

Master of Business Administration; advanced degrees for individuals focusing on business administration and management.

Lawyers

Professionals authorized to practice law, representing clients in legal matters and providing advice on legal issues.

Hot Tubs

Are large tubs or small pools full of heated water used for relaxation, hydrotherapy, or pleasure, often equipped with powerful jets.

Advertising Budget

The amount of money allocated by a business for its promotional activities over a certain period.