Which Explanation of Conspicuous Consumption Fits with Terror Management Theory

question 7

Multiple Choice

Which explanation of conspicuous consumption fits with terror management theory? ​

• A)Acquisition of material things helps humans feel their existence extends beyond death.
• B)Purchasing things lowers arousal and reduces terror. ​
• C)Purchasing things increases arousal and helps one combat terror. ​
• D)Acquisition of material things help a person establish their social identity. ​

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Definitions:

EBIT-EPS Analysis

A study conducted to determine the impact of debt on a company's earnings before interest and taxes (EBIT) and its earnings per share (EPS).

Leverage

The employ of various financial instruments or borrowed capital, like debt, to increase the potential return of an investment.

Degree of Financial Leverage

A measure that assesses the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its use of fixed-cost financing.

Earnings Before Interest

Net income before interest expenses have been deducted; used to analyze the profitability of a company's core operations without the cost of borrowing.