Which of the Following Statements Is Correct

question 39

Multiple Choice

Which of the following statements is correct?

• A) When financial leverage is used, the graphical probability distribution of net income would tend to be more peaked than a distribution where no leverage is present, other things held constant.
• B) From an operational standpoint the goal of maintaining financial flexibility translates into maintaining adequate reserve borrowing capacity.
• C) While business risk varies form one industry to another and can change over time, it affects all firms equally within a particular industry.
• D) The optimal capital structure is the one that maximises EBIT, and this always calls for a debt ratio which is lower than the one that maximises expected EPS.
• E) The above statements are all false.

Understand the basic concepts and processes involved in meiosis and mitosis.

Identify the stages and outcomes of meiosis.

Describe the chromosomal basis of inheritance and the role of crossing over in genetic diversity.

Differentiate between asexual and sexual reproduction and their evolutionary significance.

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Definitions:

Indirect Materials

Materials that are used in the production process but are not directly traceable to a finished product.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be directly traced to the goods being produced.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production based on a specific activity base.

Direct Labor-Hours

The total hours worked directly on the production of goods.