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If Two Companies Have the Same Revenues and Operating Expenses,their

question 36

True/False

If two companies have the same revenues and operating expenses,their net incomes will still be different if one company finances its assets with more debt and the other company with more equity.


Definitions:

Unemployment Rate

The proportion of people in the workforce who are unemployed and seeking work actively.

Employed

The state of having a paid job or being engaged in a profitable activity.

Unemployed

Individuals who are willing and able to work but cannot find employment.

Inflation Rate

measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

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