Critical Thinking Questions Case 2-2 You Are a Professional Web

question 37

Multiple Choice

Critical Thinking Questions Case 2-2 You are a professional web designer and today is your first meeting with a potential new client, Adam Jones. He is the president of a company that manufactures products under contract for the U.S. government. Adam asks you to explain how you will follow U.S. government agency requirements for accessibility in your website design. You assure him that you will _______.

• A) use liquid design techniques to avoid many browser resolution issues
• B) post to the website the copyright and disclaimer of liability notices prepared by his legal department
• C) follow the WAI and Section 508 guidelines
• D) keep web usability uppermost in mind when you develop the website's pages

Understand the implications of changes in EBIT on EPS, given a company's capital structure.

Assess the impact of sales variations on operating income using the concept of operating leverage.

Identify the factors influencing a firm's return on capital employed (ROCE).

Analyze how capital restructuring impacts a firm's value and leverage ratios according to the Modigliani-Miller model.

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Definitions:

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, deductions, and credits.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed to the government.

Standard Deduction

A portion of income that is not subject to tax and can be used to reduce a taxpayer's taxable income.