____21. High operating leverage means

a. high fixed costs b. low risk c. high variable costs d. no mixed costs

____22. You sell a product for $8, and it costs you $3. If fixed costs are $1,000, the break even quantity is:

a. 100 b. 200 c. 250 d. 800

____23. We decide were going to buy our competitor. This is known as:

a. vertical integration c. horizontal integration

b. benchmarking d. staging

____24. I want to calculate the current ratio for my company. I will need:

a. the balance sheet c. the income statement

b. the cash flow statement d. all of these financial statements

____25. Your CPA firm has just concluded the audit of your company and is about to issue their opinion. You hope/expect to get from them:

a. an adverse opinion c. an unqualified opinion

b. a qualified opinion d. . a disclaimer

____26. The figure that is most often used to measure liquidity is:

a. the debt to equity ratio b. the profit margin

c. the current ratio d. the receivables turnover