Which One of the Following Characteristics Best Describes a Project

question 70

Multiple Choice

Which one of the following characteristics best describes a project that has a low degree of operating leverage?

• A) High variable costs relative to the fixed costs
• B) Relatively high initial cash outlay
• C) OCF that is highly sensitive to the sales quantity
• D) High level of forecasting risk
• E) High depreciation expense

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Definitions:

Unknown Territory

New or unfamiliar areas, contexts, or situations that have not been previously explored or understood.

Venture Capital Investment

Funding provided by investors to startup companies and small businesses with perceived long-term growth potential.

Actual Deal

The final agreement in a negotiation or transaction, reflecting the realized conditions and terms after discussions have concluded.

Fund Raising

The process of gathering voluntary contributions of money or other resources, typically for non-profit organizations or to finance a particular project or venture.