Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)The higher the firm's leverage,the higher the degree of sensitivity of profits to cost changes.
• B)The higher the firm's leverage,the lower the degree of sensitivity of profits to cost changes.
• C)The higher the firm's leverage,the higher the degree of sensitivity of profits to volume changes.
• D)The higher the firm's leverage,the lower the degree of sensitivity of profits to volume changes.

---

Definitions:

Pay Structure

The pay policy resulting from job structure and pay level decisions.

Technical Expertise

Specialized knowledge or skills in a specific field or technology, often acquired through education and experience.

Adaptation

The process of adjusting to new conditions or environments.

Managerial Assignment

Tasks or responsibilities assigned to managers or supervisory positions within an organization.