One of the Most Cost-Effective Means of Addressing Risk Is

question 2

True/False

One of the most cost-effective means of addressing risk is the enactment of building codes that require rehabilitation of existing potentially hazardous structures.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.

Highly Automated Industries

Sectors where machines and advanced technologies preponderantly perform production and operational processes, reducing human intervention.