Financial Leverage Occurs Because of the Existence of Fixed Financial

question 60

Multiple Choice

Financial leverage occurs because of the existence of fixed financial costs such as _____.

• A) insurance expenses
• B) preferred dividends
• C) common stock dividends
• D) depreciation
• E) rent

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Definitions:

Psychoanalysis

Sigmund Freud’s theory of personality and system of therapy for treating mental disorders.

Personality Theory

The study of personality that aims to understand the differences in individuals’ characteristics, behaviors, and thinking patterns.

Psychic Energy

In psychoanalytic theory, a fundamental concept representing the drive or force within the psyche that motivates human behavior.

Libido

To Freud, the form of psychic energy, manifested by the life instincts, that drives a person toward pleasurable behaviors and thoughts. To Jung, a broader and more generalized form of psychic energy.