The Percentage Change in Earnings Before Interest and Taxes (EBIT)

question 72

Multiple Choice

The percentage change in earnings before interest and taxes (EBIT) associated with a given percentage change in sales is known as the degree of _____. 

• A)financial leverage
• B)operating leverage
• C)total leverage
• D)combined leverage
• E)sales leverage

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Definitions:

Effector Organ

An organ or tissue that responds to neural or hormonal signals, carrying out the final response or action.

Autonomic Ganglion

A collection of nerve cell bodies in the autonomic nervous system that act as relay points for transmitting neurological signals to organs.

Smooth Muscle

A type of muscle found in the walls of hollow organs like the intestines and blood vessels, characterized by its involuntary control and lack of striations.

Pelvic Splanchnic Nerves

Nerves that arise from the sacral spinal nerves, contributing to the autonomic innervation of the pelvic organs.