When Variable Costs Are High Relative to Total Costs, Those

question 133

True/False

When variable costs are high relative to total costs, those companies or organizations are said to be margin sensitive.

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Definitions:

Financial Contracts

Agreements between parties to conduct a financial transaction according to specified terms.

Synthetic Stock Positions

Financial derivative strategies that mimic the outcomes of holding an actual stock, using instruments such as options.

Market Timers

Individuals or entities that attempt to predict market movements and make buying or selling decisions based on those predictions.

Transaction Cost

Expenses incurred when buying or selling securities, including commissions, taxes, and other fees.