A Firm Will Break Even When

question 122

Multiple Choice

A firm will break even when:

• A) Revenues = Variable costs - Fixed costs
• B) Revenues = Variable costs + Fixed costs
• C) Revenues - Variable costs = Fixed costs
• D) Both Revenues = Variable costs + Fixed costs and Revenues - Variable costs = Fixed costs are correct

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Definitions:

Ethical Tolerances

The degree to which behavior deviating from ethical norms is accepted or allowed within a group, organization, or society.

Ethics Ombudsperson

An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.

Corporate Conscience

A concept referring to a company's ethical compass and its commitment to doing what is right in terms of social responsibility, beyond mere compliance with laws.

Company's Code

A set of guidelines, ethics, or standards that a company follows to ensure legal compliance and maintain its corporate integrity.