Which of the Following Was the Catalyst for the Recent

question 2

Multiple Choice

Which of the following was the catalyst for the recent financial crisis?

• A)Corruption in the investment banking industry.
• B)Widespread layoffs due to illegal alien hiring.
• C)Defaults on subprime mortgages.
• D)All of these were catalysts.

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Definitions:

Net Operating Income

The profit a company makes after deducting operating expenses but before interest and taxes.

Operating Loss

A situation where a company's total operating expenses exceed its total revenue, indicating a deficit in its core business operations.

Variable Costing

A cost accounting method that only includes variable production costs in the cost of goods sold, excluding fixed manufacturing overhead.

Net Operating Income

A measure of a company's profitability, calculated as the difference between its total revenue and its total operating expenses, excluding taxes and interest.