If a firm is projected to increases revenues by 10 AND net income by the same amount, which of the following must be TRUE?
A) There can be no variable costs.
B) There can be no fixed costs
C) There can be no taxes.
D) The change in expenses must be exactly equal to the change in revenues.
Question 2
The iron law of risk and return means that
A)
to earn higher investment returns you must undertake higher investment risk.
B)
to earn higher investment return you run the risk of filing a fraudulent tax return.
C)
most investments require your strict adherence to securities laws.
D)
as a beginning investor you run the risk of substantial investment losses.
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