The Type of Thinking That Produces Many Answers to the Same

question 76

Multiple Choice

The type of thinking that produces many answers to the same question is called ________ thinking. This kind of thinking characterizes creativity.

• A) divergent
• B) convergent
• C) oblique
• D) finite

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Definitions:

DFL

Degree of Financial Leverage; a measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, highlighting the impact of financial leverage.

DOL

Degree of Operating Leverage, a measure of a company's operating risk by quantifying how a change in sales affects its operating income.

Earnings Per Share (EPS)

Earnings Per Share (EPS) is a financial metric that divides a company's profit attributable to each outstanding share of common stock, indicating the company's profitability.

Business Risk

The exposure a company or investor has to factors that can lower its profits or lead to its failure.