Which of the Following Statements Is Correct

question 120

Multiple Choice

Which of the following statements is correct?

• A) Suppose Company A's EPS is expected to experience a larger percentage change in response to a given percentage change in sales than Company B's EPS.Other things held constant,Company A would appear to have more business risk than Company B.
• B) Statement a would be correct if the term "EBIT" were substituted for "EPS."
• C) Statement a would be correct if the term "EBIT" were substituted for "sales."
• D) Statement a would be correct if the words "financial risk" were substituted for "business risk."
• E) The above statements are all false.

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Definitions:

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Dysgraphia

A neurological disorder characterized by impaired handwriting and/or spelling abilities, not associated with intellectual impairments.

Special Difficulties

Unique challenges or obstacles that are not typical or widespread.

Poor Handwriting

handwriting that is difficult to read due to issues with legibility, consistency, or form, often not meeting expected standards for age or grade level.