QUESTION: 157

It is possible to examine the uncertainty of income to the various suppliers of capital by investigating the uncertainty of income to the company. The greater the uncertainty of income to the company:

The greater the uncertainty of the income to the investor in the company
The lesser the uncertainty of the equity to the investor in the company
The greater the uncertainty of the equity to the investor in the company
The lesser the uncertainty of the income to the investor in the company

Answer(s): A

Reveal Solution Next Question

QUESTION: 158

In measuring the business risk, for many companies, sales volatility is the most important determinant of the fluctuation of net income measured by the standard deviation. Although companies may have some control over annual sales volume, sales volatility is, to a considerable extent, a function of the:

Economy's overall health
Operating leverage
Consumers' willingness to spend their disposable income
GDP

Answer(s): A,C

Reveal Solution Next Question

QUESTION: 159

Some judicial circuits use a multifactor test to determine whether compensation is reasonable or excessive. For example, the Ninth Circuit has used a five-factor test. Which of the following is out of those factors?

The employee's role in the company
Compensation paid to similarly situated employees in similar companies
The character and condition of the company
All of these

Answer(s): D

Reveal Solution Next Question

QUESTION: 160

Financial risk is measured in the following ways EXCEPT:

Through calculating the degree of financial leverage
Through calculating various leverage ratios
Standard deviation of net income
Calculating the level of company's fixed operating income

Answer(s): A,B

Reveal Solution Next Question

Free ABV Exam Braindumps (page: 41)

QUESTION: 157

QUESTION: 158

QUESTION: 159

QUESTION: 160

ABV Discussions & Posts