What Is the Term for the Relationship Between a Fraction

question 100

Multiple Choice

What is the term for the relationship between a fraction and its inverse?

• A)percent
• B)proportion
• C)ratio
• D)reciprocal
• E)none of the above

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Definitions:

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Financial Leverage

The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.

Operating Leverage

Operating leverage refers to the degree to which a company or project can increase operating income by increasing revenue.

Total Leverage

The combination of operating leverage (affecting operating income) and financial leverage (affecting net income), indicating total risk.