If a Firm's Sales Decrease by 15%, and Profits Decrease

question 22

Multiple Choice

If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the firm's operating leverage is

• A) 1.33.
• B) 0.75.
• C) 5.
• D) −5.

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Definitions:

Internal Recruitment

involves filling job vacancies within an organization by considering current employees for promotion or transfer to the open positions.

External Recruitment

The process of seeking and attracting candidates for employment from outside the organization.

Problem Solving

The process of identifying, analyzing, and finding solutions for issues or challenges.

External Recruitment

The process of filling job vacancies with candidates from outside the organization.