Some of the Variables That Determine Which Decision Is Made

question 83

Multiple Choice

Some of the variables that determine which decision is made where include:

• A)product and equipment.
• B)competence of subsidiary.
• C)state-of-the-art communication networks.
• D)product and equipment and competence of subsidiary.
• E)geographical location.

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Definitions:

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the extent to which a company can increase its profits by increasing sales.

Modigliani-Miller Model

A foundational financial theory proposing that the market value of a company is determined by its earning power and risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends.

Restructuring

The process of reorganizing a company's structure, operations, or debt to improve efficiency or manage financial challenges.

Tax Effect

The impact of taxation on business decisions, investments, and net income, considering both current and future taxes.