Which of the Following Statements Is Not True

question 56

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 good because it means that profits will increase rapidly.
• D) When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.

Differentiate between in-groups and out-groups, referencing their characteristics and examples.

Grasp the concept of dyads and their main characteristics.

Recognize the historical and social context of the industrial revolution.

Describe the characteristics, significance, and examples of social networks and reference groups.

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Definitions:

Tying Arrangements

A business practice where a seller requires the buyer to purchase other products as a condition of getting the desired product.

Federal Trade Commission

A U.S. federal agency tasked with consumer protection and the prevention of anti-competitive business practices.

Sherman Act

A landmark federal statute in the antitrust law of the United States, passed in 1890, which prohibits monopolistic practices and promotes competition.

Justice Department

A government department responsible for the enforcement of the law and administration of justice, primarily at a federal level.