A Managerial Preference for a Very Low Degree of Operating

question 65

Multiple Choice

A managerial preference for a very low degree of operating leverage might indicate that

• A)an increase in sales volume is expected.
• B)a decrease in sales volume is expected.
• C)the firm is very unprofitable.
• D)the firm has very high fixed costs.

Recognize the role of personal branding and the unique selling proposition (USP) in today's job market.

Analyze the impact of neoliberalism and the gig economy on employment patterns and job security.

Identify the evolution from Fordism to post-Fordism, focusing on the shift from product to process orientation.

Understand the concept and significance of teamwork in contemporary organizations.

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Definitions:

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, as part of a company’s cash flow activities.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity or debt, and dividend payments.