Which One of the Following Could Lower the Risk of a Project

question 92

Multiple Choice

Which one of the following could lower the risk of a project by lowering the degree of operating leverage?

• A) You could hire temporary workers from an employment agency rather than hiring part-time employees.
• B) You could use sub-contractors to produce sub-assemblies of your product rather than purchasing new equipment to do the work in-house.
• C) You could lease equipment on a long-term basis rather than buying the equipment.
• D) You could lower the projected selling price per unit.
• E) You could change the production method to one which relies more on fixed costs and less on variable costs than the current proposed method of production.

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Definitions:

Public Sector

The part of the economy composed of both public services and public enterprises, owned and operated by the government.

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A system where information is the primary commodity and the main driver of economic activity, influencing how goods and services are generated, exchanged, and valued.

Robin Leidner

A sociologist known for her work on labor, service work, and the ways in which jobs are structured and experienced.

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Refers to the authentic and genuine aspects of an individual's personality or identity, as opposed to roles or personas adopted for social conformity.