From Finance in Action - Global, We Can Correctly Assume

question 63

Multiple Choice

From Finance in Action - Global, we can correctly assume that

• A)Japanese firms routinely employ high financial leverage.
• B)Japanese firms prefer a position of low operating leverage.
• C)Japanese firms tend to react aggressively to volume changes.
• D)Japanese firms routinely employ high financial leverage and tend to react aggressively to volume changes.

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Definitions:

Supply

The total amount of a good or service that is available to consumers at a given price level and time.

Demand

The desire and ability of consumers to purchase a good or service at a given price.

Tax

A required financial contribution or alternative type of tax placed on a taxpayer by a state authority to cover government outlays and assorted public spending.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, the disabled, and children of deceased workers.