Changing a Company's Cost Structure May Affect

question 114

Multiple Choice

Changing a company's cost structure may affect

• A)Operating leverage.
• B)Behavioral implications for employees.
• C)Both operating leverage and behavioral implications for employees.
• D)Neither operating leverage nor behavioral implications for employees.

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Definitions:

S Corporation

A specialized form of corporation in the United States that allows income to be passed through to shareholders for federal tax purposes, avoiding double taxation.

Profit Distributions

The sharing of earnings among the shareholders of a company, often in the form of dividends.

Involuntary Dissolution

The compulsory termination of a corporation or partnership by a court order, often due to failure to comply with legal requirements or insolvency.

Court Order

A formal statement issued by a court that requires a person or entity to do or refrain from doing something.