Pluto Is Classified as a Dwarf Planet Because

question 32

Multiple Choice

Pluto is classified as a dwarf planet because:

• A) it has not cleared out other bodies from its orbit
• B) it is over 1,000 times smaller than the Earth's moon
• C) it has no moons of its own
• D) it has a unique chemical composition that is very different from other planets
• E) it orbits just outside the Solar System

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Definitions:

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the extent to which a company can increase its profits by increasing sales.

Modigliani-Miller Model

A foundational financial theory proposing that the market value of a company is determined by its earning power and risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends.

Restructuring

The process of reorganizing a company's structure, operations, or debt to improve efficiency or manage financial challenges.

Tax Effect

The impact of taxation on business decisions, investments, and net income, considering both current and future taxes.