If a Firm's Degree of Total Leverage (DTL)is 8

question 64

Multiple Choice

If a firm's degree of total leverage (DTL) is 8.0,which of the following must be correct?

• A) The firm must have fixed operating costs.
• B) The firm must have fixed financial costs.
• C) The firm must have both fixed operating costs and fixed financial costs.
• D) The firm must have some fixed costs,but not enough information is given to determine whether the fixed costs are operating,financial,or both.
• E) With the information given,we cannot tell whether the firm has any fixed costs (either operating or financial)at all.

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Definitions:

Intergroup Behaviour

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Social Groups

Collections of individuals who interact and share common objectives, norms, or interests.

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Organized activities aiming to express opposition or demand changes from authorities or public policies, typically involving large groups of people.

Klandermans

A scholar recognized for contributing to the understanding of social movement participation, particularly through the emphasis on psychological processes.