Which of the Following Affects a Firm's Sensitivity of Its

question 50

Multiple Choice

Which of the following affects a firm's sensitivity of its earnings to the business cycle?
I. Financial leverage
II. Operating leverage
III. Type of product

• A) II only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

Open-Ended Questions

Questions that allow respondents to answer in their own words, providing depth and insight beyond simple yes or no answers.

Closed-Ended Questions

Questions designed with predefined response options, allowing for easier quantification of answers but limiting the ability to provide nuanced responses.

Response Alternatives

The different options or answers that are provided for a question in a survey or questionnaire.

Panel Study

A longitudinal study where the same individuals or units are surveyed or measured over multiple time points.