One Approach to Quality Assurance Is to Test the Code

question 46

Multiple Choice

One approach to quality assurance is to test the code for a completed unit of software by actually entering test data and comparing the results with the expected results in a process called .

• A) dynamic testing
• B) user acceptance testing
• C) integration testing
• D) static testing

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Definitions:

Financial Leverage

The use of borrowed money (debt) to amplify the potential returns from an investment, increasing risk and potentially reward.

Financial Distress

A condition in which a company cannot generate the revenues or income necessary to meet its financial obligations, which may lead to bankruptcy.

MM Propositions

The Modigliani-Miller propositions, which are foundational theorems in corporate finance, asserting that under certain conditions, the value of a firm is unaffected by its capital structure.

Optimal Capital Structure

The best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of capital.