Operating Leverage Refers to

question 39

Multiple Choice

Operating leverage refers to

• A) financing a portion of the firm's assets with securities bearing a fixed rate of return.
• B) the additional chance of insolvency borne by the common shareholder.
• C) the incurrence of fixed operating costs in the firm's income stream.
• D) a high degree of variable costs of production.

---

Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most observations cluster around the central peak and probabilities for values decrease as they move away from the center.

Brass And Steel

Alloys used in various applications; brass is a combination of copper and zinc, while steel is an alloy of iron with carbon and sometimes other elements.

WAIS

The Wechsler Adult Intelligence Scale, a commonly used test designed to measure a person's cognitive ability or intelligence level.

SAT Math Test

A standardized test section that assesses mathematical reasoning and problem-solving skills, part of the SAT college entrance examination.