Variations in Operating Income Over Time Because of Variations in Unit

question 134

Multiple Choice

Variations in operating income over time because of variations in unit sales, price, cost margins, and/or fixed expenses are called:

• A)business risk
• B)exchange rate risk
• C)purchasing power risk
• D)financial risk
• E)none of the above

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Definitions:

Charitable Donations

Financial or material contributions given to nonprofit organizations or causes for philanthropic purposes.

Implied Powers

Powers not explicitly stated in a constitution or legal document but deemed necessary to execute the powers that are expressly stated.

De Facto Corporation

Latin for “corporation in fact” a corporation that has not substantially met the requirements of the state incorporation statutes.

Incorporation Statute

Laws enacted by a state that outline the requirements for forming and operating a corporation within that state.