Which of the Following Is Good Advice for Someone About

question 95

Multiple Choice

Which of the following is good advice for someone about to take a multiple-choice test?

• A) Do the most difficult and time-consuming questions first.
• B) Always read each question completely.
• C) It's a good idea to stick with your first answer.
• D) As you read the question, try to avoid the temptation to anticipate the answer.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed versus variable costs that a company has.

Marginal Tax Rate

The marginal tax rate is the rate at which an additional dollar of income is taxed, representing the fraction of the last dollar earned that is paid in taxes.

Required Rate of Return

The lowest expected gain an investor foresees from putting money into a specific asset, taking into account the asset’s level of risk.

Financial Break-Even

The point at which total revenues are equal to total financial costs, resulting in zero net income or loss.