Which of the Following Statements Is NOT True

question 39

Multiple Choice

Which of the following statements is NOT true?

• A)Operating leverage refers to the extent to which a company's net income reacts to a given change in sales.
• B)Companies that have higher fixed costs relative to variable costs have higher operating leverage.
• C)When a company's sales revenue is increasing, high operating leverage is a good thing because it means that profits will increase rapidly.
• D)When a company's sales revenue is decreasing, high operating leverage is a good thing because it means that profits will decrease at a slower pace than revenues decrease.

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Definitions:

Notice

A formal communication or announcement, often required in legal contexts to inform parties of certain actions or decisions.

Racial Imbalance

A situation in which there is a disproportionate representation of racial or ethnic groups in a particular context, often highlighting issues of inequality or segregation.

Gender Imbalance

A situation where there is an unequal distribution of individuals of different genders in a particular setting or population.

Prejudice

Preconceived opinion or bias, either favorable or unfavorable, which is held without just grounds or before sufficient knowledge.