If a Graph Shows a Negative Relationship Between Two Variables

question 212

Multiple Choice

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

• A) always be an upward-sloping line.
• B) have a minimum point.
• C) have a maximum point.
• D) always be a downward-sloping line.

---

Definitions:

Indifference EBIT

The earnings before interest and taxes level at which a company will have no preference between two or more financial actions due to equivalent financial outcomes.

Capital Structure

The combination of borrowing and ownership investment utilized by a business to finance its activities and expansion.

Shares Outstanding

The total number of shares of a company that have been issued and are held by shareholders, including shares held by the public as well as restricted shares owned by the company’s insiders.

Unlevered Cost

The cost of financing a project or investment without any debt, reflecting the expenses incurred using only equity financing.