In Roger's Backhoe Service, Inc

question 14

Multiple Choice

In Roger's Backhoe Service, Inc. v. Nichols, which of the following led to the final decision by the court?

• A) The examination of the brick wall indicated that it was unfeasible to use that source of drainage.
• B) The drainage into the underground creek was fully explored and rejected.
• C) The services were beneficial to the recipient.
• D) The charges submitted on the invoices for the three-day work was unfair and unreasonable.
• E) There was no contract between the plaintiff and the defendant regarding the three-day work.

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Definitions:

EPS

Earnings Per Share – a company's profit divided by the outstanding shares of its common stock, providing an indicator of the company's profitability.

Degree Of Total Leverage

A ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income due to changes in its capital structure.

Financial Leverage

The use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in its revenue, indicating the proportion of fixed versus variable costs.