The Use of Huge Databases That Combine All of a Company's

question 46

Multiple Choice

The use of huge databases that combine all of a company's data and allow users to access the data directly, create reports, and obtain responses to what-if questions is referred to as:

• A) data mining.
• B) data processing.
• C) transaction processing systems.
• D) data warehousing.

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Definitions:

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.

Debt/Equity Ratio

A fiscal ratio that reflects the comparative amount of equity from shareholders and borrowed funds utilized to support a company's resources.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company’s earnings per share to fluctuations in its operating income, based on its capital structure.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.