Operating Profits or EBIT Is Used to Measure a Firm's

question 124

True/False

Operating profits or EBIT is used to measure a firm's profits on assets because it does not include the firm's cost of debt financing.

---

Definitions:

Unconditioned Stimulus

A stimulus that innately provokes a response without the necessity for previous learning.

Continuous Reinforcement

A learning schedule in which a reward is given after every correct response, rapidly establishing a behavior but also leading to quick extinction if rewards stop.

Target Response

A desired behavior or outcome that is identified for reinforcement in order to increase its occurrence, often used in behavior modification techniques.

Reinforcement

Reinforcement is a principle in behavioral psychology where the likelihood of a behavior is increased by following it with a positive stimulus or removing a negative one.