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

question 9

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:

Cooperatively Motivated

The inclination to work together with others towards a common goal or benefit.

Trust

A strong conviction in the dependability, accuracy, capability, or robustness of a person or entity.

Motivating Factors

Elements or conditions that induce an individual to act or perform in a certain manner, driving engagement and effort.

Invent New Options

The creation of additional alternatives or possibilities to enhance decision-making or problem-solving.