________ Is the Potential Use of Fixed Costs, Both Operating

question 28

Multiple Choice

________ is the potential use of fixed costs, both operating and financial, to magnify the effect of changes in sales on the firm's earnings per share.

• A) Debt service
• B) Total leverage
• C) Operating leverage
• D) Financial leverage

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Definitions:

Necessity Recognition

A rephrased definition of Need Recognition; it is the first step in the purchasing decision process, where a consumer realizes a vital requirement that needs to be fulfilled.

Problem Recognition

The initial stage in the buying process where a consumer realizes a need or a problem that requires a solution.

Information Search

The process that consumers undertake to gather and evaluate information about products and services that will satisfy a need or want.

Product Knowledge

Understanding and information regarding a product’s features, benefits, usage, and application.