Applied Research

question 13

Multiple Choice

Applied research:

• A)is designed to answer particular questions.
• B)is more open-ended than basic research.
• C)contributes less to visible output changes than does basic research.
• D)is research done by a firm to market a good.
• E)is research done by a firm during the production of a good.

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Definitions:

Leverage

The employ of various financial instruments or borrowed capital, like debt, to increase the potential return of an investment.

Degree of Financial Leverage

A measure that assesses the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its use of fixed-cost financing.

Earnings Before Interest

Net income before interest expenses have been deducted; used to analyze the profitability of a company's core operations without the cost of borrowing.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on the income or profit earned.