Which of the Following Is Not True About Leverage

question 85

Multiple Choice

Which of the following is not true about leverage?

• A) Operating leverage influences the top half of the income statement, determining EBIT.
• B) Financial leverage deals with the bottom half of the income statement, determining EPS.
• C) Combined leverage utilizes the entire income statement, showing the impact of change in volume on EBIT.
• D) None of the options

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Definitions:

Human Capital

Human Capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Strategic Business Partner

Refers to individuals or entities that collaboratively work with an organization to achieve its strategic objectives, often contributing expertise or resources.

HRM Strategies

Tactics and methods employed to manage the workforce effectively, aligning HRM with the overall objectives of the organization.

Organizational Strategies

Plans or approaches developed by a business to achieve its goals and to operate in a competitive environment effectively.