One Factor That Can Affect the Market Risk of a Project

question 50

Multiple Choice

One factor that can affect the market risk of a project is its degree of operating leverage,which is:

• A)the relative proportion of operating assets versus non-operating assets.
• B)the relative proportion of operating assets versus equity.
• C)the relative proportion of operating expenses versus non-operating expenses.
• D)the relative proportion of fixed versus variable costs.

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Definitions:

Cognitive Psychologists

Psychologists who study the way people think, remember, and mentally organize information.

Mental Processes

Internal, covert activities of the mind, such as thinking, reasoning, remembering, and imagining, that are critical to understanding psychological phenomena.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone, according to Maslow's hierarchy of needs.

Reinforcement

In psychology, a process by which a behavior is strengthened or increased in frequency by the consequence that follows it.