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All industrialized countries have become "service economies" in recent decades.Explain the reasons behind this shift.
Operating Leverage
A measure of how sensitive a company’s operating income is to a change in its sales volume, indicating the proportion of fixed versus variable costs.
Capital Structure Decisions
The decisions that a company makes regarding the financing mix, dividend policies, and investment strategies to maximize shareholder value.
Business Risk
Business risk refers to the potential for losing money or enduring financial harm due to factors like changes in consumer preference, market competition, or operational failures.
Personal Tax Rate
The percentage of an individual's income that is paid to the government as tax, which varies based on income level and jurisdiction.
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