Compared to Organizations with Low Operating Leverage, Organizations with High

question 65

Multiple Choice

Compared to organizations with low operating leverage, organizations with high operating leverage have:

• A) Higher risk of loss if they are close to the breakeven point
• B) Lower risk of loss if they are close to the breakeven point
• C) The same level of risk of loss as low operating leverage firms when they are close to the breakeven point
• D) A low proportion of fixed costs in total cost

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Definitions:

Phloem Transport

The process by which sugars, produced during photosynthesis, are transported throughout a plant via the phloem tissue.

Passive Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration without the input of energy.

Vascular Cylinder

The central part of a plant root, containing the xylem, phloem, and other tissues that transport water and nutrients.

Root Hairs

Thin, hair-like extensions from the root of a plant that increase the surface area for water and nutrient absorption.