Which of the Following Statements Is Correct

question 120

Multiple Choice

Which of the following statements is correct?

• A) Suppose Company A's EPS is expected to experience a larger percentage change in response to a given percentage change in sales than Company B's EPS.Other things held constant,Company A would appear to have more business risk than Company B.
• B) Statement a would be correct if the term "EBIT" were substituted for "EPS."
• C) Statement a would be correct if the term "EBIT" were substituted for "sales."
• D) Statement a would be correct if the words "financial risk" were substituted for "business risk."
• E) The above statements are all false.

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Definitions:

Probability Sampling

Type of sampling procedure in which one is able to specify the probability that any member of the populationwill be included in the sample.

Specific Population

A specific population refers to a defined group of individuals who share one or more characteristics for the purposes of research or study.

Precise Statements

Clearly defined and unambiguous declarations that convey specific information accurately.

Cluster Sampling

An approach to sampling in which the entire population is split into various segments, with a random selection of these segments being picked for examination.