The Degree of Pretax Cash Flow Operating Leverage Provides Us

question 43

Multiple Choice

The degree of pretax cash flow operating leverage provides us with

• A) a measure of how sensitive pretax operating cash flows are to changes in revenue.
• B) a measure of how sensitive accounting operating profits are to changes in revenue.
• C) a measure of how sensitive NOPAT is to changes in revenue.
• D) none of the above.

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Definitions:

Deviance

Behaviors or actions that violate societal norms, and which may attract social disapproval or sanction.

Power

The power to control or shape the actions of others and steer the direction of events.

Type of Deviance

Categorizations within deviant behavior that contrast with societal norms, including criminal and non-criminal acts.

Quinney's Social Reality Theory

A criminological theory suggesting that the definition of crime is created by those in power, reflecting and reinforcing existing social inequalities.