If Moon Corporation Has an Increase in Sales,which of the Following

question 42

Multiple Choice

If Moon Corporation has an increase in sales,which of the following would result in no change in its EBIT margin?

• A)A proportional increase in its net income
• B)A proportional decrease in its EBIT
• C)A proportional increase in its EBIT
• D)An increase in its operating expenses

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Definitions:

Majority Vote

A voting requirement where more than half of the votes cast by persons entitled to vote is needed to make a decision or pass a resolution.

MBCA

Model Business Corporation Act, a set of model laws implemented by some states to regulate the affairs of corporations.

Guth V. Loft

A notable court case dealing with corporate opportunity doctrine, establishing parameters for fiduciary duty and conflicts of interest within corporations.

Pepsi-Cola Syrup

A concentrated formula used to make Pepsi-Cola beverage, often mixed with carbonated water.