If a Firm's Fixed Costs Rise Relative to Variable Costs,​

question 32

Multiple Choice

If a firm's fixed costs rise relative to variable costs,​ and .

• A) ​operating leverage, risk increase
• B) operating leverage, financial leverage increase​
• C) financial leverage, risk increase​
• D) operating leverage increases, financial risk decreases​

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Definitions:

Ascribed Statuses

Social positions a person is born into, such as race, gender, and family background, as opposed to achieved statuses, which are acquired through personal effort.

Achieved Statuses

Social positions that individuals gain through their own efforts, skills, or accomplishments, as opposed to those inherited or assigned at birth.

Social Class

A division of a society based on social and economic status.

Postindustrial Society

A society economically dependent upon the production and distribution of services, information, and knowledge.