Operating Leverage Is Highest in Companies That Have ________

question 56

Multiple Choice

Operating leverage is highest in companies that have ________.

• A) a service rather than a manufacturing emphasis
• B) virtually no fixed costs
• C) equal variable and fixed costs
• D) a high proportion of variable costs relative to their fixed costs
• E) a high proportion of fixed costs relative to their variable costs

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Definitions:

Myers-Briggs Type

A personality framework that categorizes people into 16 different types based on preferences in four areas: orientation to the external world, information processing, decision making, and structure.

Intuition

Intuition is the ability to understand or know something immediately, based on feelings rather than conscious reasoning or factual analysis.

High Openness

A personality trait that displays a high level of creativity, curiosity, and a willingness to explore new ideas.

Broad Minded

An attitude or approach that is open to a wide range of ideas, beliefs, and opinions, often involving tolerance and understanding.