A Firm with a Higher Proportion of Fixed Costs Will

question 68

Multiple Choice

A firm with a higher proportion of fixed costs will create

• A) a higher degree of sensitivity of EBITDA to a change in revenues.
• B) a lower degree of sensitivity of EBITDA to a change in revenues.
• C) no discernible difference of a change in sensitivity of EBITDA to a change in revenues.
• D) a firm with a much more stable net income stream as a function of revenues.

---

Definitions:

Tobacco-related Deaths

Fatalities that occur due to illnesses and conditions caused by the consumption of tobacco products.

Start Smoking

The initiation of tobacco use, often leading to nicotine dependence and various health complications.

Continue

To persist in an activity or process.

Genes

Segments of DNA located on chromosomes that carry the instructions for making proteins, crucial for determining the traits and functions of an organism.