During the 1980s,foreigners Expanded Their Role in the United States

question 47

Multiple Choice

During the 1980s,foreigners expanded their role in the United States as

• A)both creditors and owners.
• B)neither creditors nor owners.
• C)as owners but not as creditors.
• D)as creditors but not as owners.

---

Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenue, indicating the level of fixed versus variable costs.

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.

EPS

Earnings Per Share, a measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.

Earnings Per Share

A company's net income divided by the number of its outstanding shares, indicating the company's profitability on a per-share basis.