Firms Whose Revenues Are Strongly Cyclical and Whose Operating Leverage

question 54

Multiple Choice

Firms whose revenues are strongly cyclical and whose operating leverage is high are likely to have:

• A) low betas.
• B) high betas.
• C) zero betas.
• D) negative betas.
• E) None of these.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces.

Behavior Modification Therapy

A form of psychotherapy that aims to change undesirable behaviors through the use of learning techniques such as reinforcement.

Unconscious Motivating Forces

Internal drives and desires that influence behavior and thought processes without the individual’s conscious awareness.

Successive Approximation

A method of behavioral training that breaks down a desired behavior into smaller, achievable steps, reinforcing closer and closer approximations to the desired behavior.