Which One of the Following Will Best Reduce the Risk

question 85

Multiple Choice

Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage?

• A)hiring temporary workers from an employment agency rather than hiring part-time production employees
• B)subcontracting portions of the project rather than purchasing new equipment to do all the work in-house
• C)leasing equipment on a long-term basis rather than buying equipment
• D)lowering the projected selling price per unit
• E)changing the proposed labor-intensive production method to a more capital intensive method

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Definitions:

Special State Conventions

Assemblies convened within a state for specific purposes, such as ratifying constitutional amendments or drafting a new state constitution.

U.S. Constitution

The foundational document of the United States, establishing the framework of the federal government and outlining the rights and freedoms of its citizens.

Ratify

The act of officially approving a treaty, agreement, or legislation, making it formally valid.

Three-Fifths Compromise

An agreement reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for purposes of representation and taxation.