Which of the Following Statements Is Most Correct

question 102

Multiple Choice

Which of the following statements is most correct?

• A)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1986 during the Reagan administration.
• B)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1990 during the George H.W.Bush administration.
• C)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 2002 during the George W.Bush administration.
• D)The federal government has produced annual budget deficits for all years but four, when it ran consecutive budget surpluses that began in 1998 during the Clinton administration.
• E)none of the above.

---

Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating the contribution towards covering fixed costs and profit.

Business Risk

The potential for loss or failure in a business operation due to factors like market conditions, financial instability, or operational challenges.

Financial Risk

The possibility of losing money on an investment or business venture, including market risk, credit risk, liquidity risk, and operational risk.

Variable Cost Ratio

This is a financial metric that represents the variable costs incurred as a percentage of sales, showing how much of each sales dollar is eaten by variable costs.