Laws and Regulations Prohibiting a Wide Range of Corporate Activities

question 71

Multiple Choice

Laws and regulations prohibiting a wide range of corporate activities have been blamed for all but which of the following?

• A) Putting American corporations at a competitive disadvantage relative to foreign corporations
• B) Costing American taxpayers money
• C) Putting the lives of American workers in greater jeopardy
• D) Deterring qualified people from serving in public office

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Definitions:

Degree of Operating Leverage

A ratio that measures how a percentage change in sales will affect profits, highlighting the impact of fixed costs on earnings.

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business, such as raw materials and labor costs.

Fixed Expenses

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.