Which of the Following Statements Is Most Correct

question 85

Multiple Choice

Which of the following statements is most correct?

• A)The degree of combined leverage measures the sensitivity of earnings per share ininto changes in EBIT.
• B)A firm's business risk is measured by its variability in earnings per share over time.
• C)A firm's degree of combined leverage is the product of its degree of operating leverage and its degree of financial leverage.
• D)All the above statements are false.

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Definitions:

Online Communities

Virtual spaces where individuals with shared interests, goals, or purposes interact, share information, and build relationships over the internet.

Design Thinking

Design thinking is a process that encourages organizations to focus on the people they’re creating products for.

New-product Strategy

A plan that outlines the conceptualization, development, and launch of new products, considering the target market and the competitive landscape.

Strategy Development

It involves creating plans and tactics to achieve a specific organizational goal or objective, typically by analyzing internal and external environments.