A Degree of Operating Leverage (DOL) Equal to 1

question 33

Multiple Choice

A degree of operating leverage (DOL) equal to 1.5 times indicates that for every 1 percent change in _____. 

• A)earnings per share (EPS) there will be a 1.5 percent change in sales
• B)interest there will be a 1.5 percent change in earnings before interest and taxes (EBIT)
• C)sales there will be a 1.5 percent change in earnings before interest and taxes (EBIT)
• D)earnings before interest and taxes (EBIT) there will be a 1.5 percent change in earnings per share (EPS)
• E)sales there will be a 1.5 percent change in earnings per share (EPS)

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Definitions:

Alfred Adler

A psychologist and founder of Adlerian psychology, emphasizing the importance of feelings of inferiority and community life.

Inferiority Complex

A psychological condition where a person feels a deep sense of inadequacy and incompetence, often stemming from real or perceived weaknesses.

Behavior Modification

A psychological technique involving the application of reinforcement or punishment to change behavior.

Client-Centered Therapy

A psychotherapeutic approach that emphasizes the client’s role in the healing process, recognizing them as the primary agent of change.