In a Highly Leveraged Company

question 33

Multiple Choice

In a highly leveraged company,

• A) fixed costs are low and variable costs are high.
• B) large changes in sales volume result in small changes in net income.
• C) there is a higher possibility of net income or net loss and therefore more risk than a low leveraged firm.
• D) a variation in sales leads to only a small variability in net income.

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Definitions:

Control Groups

A group in an experiment that does not receive the treatment being tested and is used as a benchmark to measure how the other tested subjects do.

Motivational Interviewing

A counseling approach that helps individuals find the internal motivation to change their behavior through exploring and resolving ambivalence.

Person-centered Therapies

A form of psychotherapy focusing on the individual's experience and emphasizing the importance of being in a therapeutic condition perceived as safe and supportive by the client.

Meta-analysis

A statistical technique that combines the results of multiple scientific studies to identify patterns, strengths, and weaknesses among the findings.