If a Change in Sales Results in a Greater Relative

question 41

Multiple Choice

If a change in sales results in a greater relative change in operating income (EBIT) , we know that the firm has

• A)a degree of operating leverage greater than one.
• B)a degree of financial leverage greater than one.
• C)a degree of operating leverage less than one.
• D)a degree of financial leverage less than one.
• E)none of the above.

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Definitions:

Behaviour Modelling

A training technique that involves demonstrating desired behaviors as a way for learners to observe and then replicate the behavior in real-life scenarios.

Role-play

A training or learning technique in which individuals simulate actions and scenarios to practice responses, improve skills, or understand different perspectives.

Reinforcement

In organizational behavior, a strategy to encourage specific behaviors through rewards or consequences.

Learning Points

Specific pieces of knowledge or understanding gained through education or experience, often used as building blocks in the learning process.