Firms Whose Revenues Are Strongly Cyclical and Whose Operating Leverage

question 27

Multiple Choice

Firms whose revenues are strongly cyclical and whose operating leverage is high are likely to have:

• A) low betas.
• B) high betas.
• C) zero betas.
• D) negative betas.

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Definitions:

Sustainable Consumer Behavior

Consumer habits and practices that are conscious of environmental sustainability, aiming to minimize negative impact on the environment through thoughtful consumption.

Distrust

A feeling of doubt about the honesty, integrity, or reliability of a person or system, often leading to caution or avoidance.

Significant Stakeholders

Individuals or groups that have a major interest or stake in the success and decisions of a project or organization, such as investors, employees, customers, and suppliers.

Corporate Philanthropy

The act of a corporation donating a portion of their profits, or their resources, to charitable causes.