Which of the Following Is a Basic Source of Capital

question 189

Multiple Choice

Which of the following is a basic source of capital for a firm ?

• A) short-term debt
• B) discounts from suppliers
• C) current liabilities
• D) common stock

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.