The Term 'Bottom Line' Is a Reference To

question 190

Multiple Choice

The term 'bottom line' is a reference to:

• A)overall company profitability.
• B)a firm's social responsibility.
• C)the limits on marketing budgets.
• D)the ethical and social viability of marketing.

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Definitions:

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.

EBIT

Known as Earnings Before Interest and Taxes, this financial gauge calculates a firm's profitability without considering interest and income tax charges.