Which of the Following Statements Is True Regarding the Effectiveness

question 176

Multiple Choice

Which of the following statements is true regarding the effectiveness of contingency contracts when used with children?

• A)They are consistent and there is no room for reinterpretation of the rules.
• B)They are flexible and are regularly subject to change on an as-needed basis.
• C)Parents can back down on a promised privilege.
• D)Children can change the rules as needed,at any time.

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Definitions:

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Total Equity

The sum of all stakes in a corporation, determined by subtracting total liabilities from total assets.