EBITDA Is More Sensitive to Changes in Revenue Than EBIT

question 91

True/False

EBITDA is more sensitive to changes in revenue than EBIT.

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Definitions:

Transactions Entered

The process of recording financial or other relevant data into a system or ledger.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and sue or be sued.

Entrepreneurs

Individuals who create, organize, and operate a business or businesses, taking on greater than normal financial risks in order to do so.

C Corporation

A type of corporate structure where shareholders are taxed separately from the corporation, characterized by potential double taxation on earnings and dividends.