Which of the Following Statements Is True in the Context

question 1

Multiple Choice

Which of the following statements is true in the context of source credibility?

• A) Trustworthy sources cannot be persuasive even if they are experts.
• B) The credibility of a spokesperson has a stronger influence than the credibility of a company.
• C) The credibility of a company has a stronger influence than the credibility of a spokesperson.
• D) Expert sources cannot be persuasive even if they are perceived as being untrustworthy.

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Definitions:

Times Interest Earned

A financial metric indicating how well a company can meet its interest obligations from earnings before interest and taxes.

EBIT

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

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.