Which of the Following Is NOT Used as an Approach

question 16

Multiple Choice

Which of the following is NOT used as an approach to scoring the MSCEIT - the test of emotional intelligence described in your textbook?

• A) Correct answers are determined by someone who has actually had the experience described in each question.
• B) Correct answers are chosen based on empirical research on the outcomes of each possible course of action for each question in the test.
• C) The answer given by the greatest number of people taking the test is considered the correct answer.
• D) The answer selected by experts, typically people who do research on emotion.

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Definitions:

Degree Of Financial Leverage (DFL)

A ratio indicating how much a company's earnings before interest and taxes (EBIT) can be affected by a change in its capital structure.

EPS

Earnings Per Share – a company's profit divided by the outstanding shares of its common stock, providing an indicator of the company's profitability.

Degree Of Total Leverage

A ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income due to changes in its capital structure.

Financial Leverage

The use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.