Financial Leverage Results from the Presence of Variable Financial Costs

question 125

True/False

Financial leverage results from the presence of variable financial costs in the firm's income stream.

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Definitions:

Classical Conditioning

Education that takes place by associating an environmental cue with a naturally existing stimulus.

Positive Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated.

Secondary Reinforcers

Stimuli that acquire their reinforcing properties through association with primary reinforcers.

Shaping

A method used in behavioral training and psychology to gradually teach new behaviors through reinforcement of successive approximations toward the target behavior.