Critical Thinking Questions Case 1 You Want to Learn More

question 90

Multiple Choice

Critical Thinking Questions Case 1 You want to learn more about computers and your professor suggests that one way to learn is to become familiar with the categories into which they fall. Which of the following types of computers typically has the lowest number of simultaneously connected users?

• A) game console
• B) embedded computer
• C) supercomputer
• D) server

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Definitions:

Operating Leverage

A measure of how revenue growth translates into an increase in operating income, indicating the extent to which a company can increase profitability by increasing sales.

Financial Leverage

The use of borrowed funds in an attempt to increase the returns to equity.

Fixed Costs

For expenses like rent, salaries, and insurance premiums, their amounts do not fluctuate with the levels of output or sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.