Which of the Following Is True About the Concept of Leverage

question 92

Multiple Choice

Which of the following is true about the concept of leverage?

• A) at the breakeven point, operating leverage is equal to zero.
• B) combined leverage measures the impact of operating and financial leverage on EBIT.
• C) financial leverage measures the impact of fixed costs on earnings.
• D) none of these

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Definitions:

Dominant

Referring to an allele or a gene that expresses its phenotype even in the presence of a recessive allele of the same gene.

Genotype

The genetic makeup of an organism consisting of all the DNA sequences (genes) it possesses, determining specific traits.

RR Parent

Refers to a plant that is homozygous for the round seed shape allele in Mendelian genetics, "RR" signifies both alleles for a trait are the same (dominant).

Dominant Phenotype

The observable trait or characteristics of an organism that masks the effect of a recessive allele; it is expressed in the phenotype when a dominant allele is present.