Fluctuations in a Firm's Operating Income Represent

question 61

Multiple Choice

Fluctuations in a firm's operating income represent:

• A) financial leverage.
• B) the weighted-average cost of capital.
• C) capital structure.
• D) business risk.

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Definitions:

Demonstrative Legacy

A demonstrative legacy is a specific gift of money with the direction that it is to be paid out of a particular fund or property, used in wills and estate planning.

Probate

The legal process through which a deceased person's will is validated and their estate is distributed to beneficiaries.

General Legacy

A bequest of a specified amount of money or a percentage of the estate to a beneficiary, as stipulated in a will.

Personal Property

Movable assets owned by an individual or an entity, such as vehicles, furniture, and equipment, in contrast to real property like land or buildings.