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Briefly explain an enterprise resource planning (ERP)system.
Operating Leverage
This is a measure of how revenue growth translates into growth in operating income, showing the proportion of fixed costs in a company's cost structure.
Financial Leverage
Financial leverage refers to the use of borrowed funds to increase the potential return on investment, amplifying both potential gains and losses.
Technological Advantages
Benefits a company gains by utilizing superior technology compared to its competitors, potentially leading to higher efficiency and profit margins.
Equity Account
An account that represents the ownership interest of shareholders in a corporation, reflected in common and preferred shares.
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