A Firm with High Operating Leverage Is Expected To

question 65

Multiple Choice

A firm with high operating leverage is expected to:

• A)Have high variable costs
• B)Have low fixed costs
• C)Have a high degree of profitability
• D)Perform better when sales are high

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Definitions:

External Collaboration

The act of partnering or working together with outside individuals or organizations to achieve common goals or complete projects.

Internal Ideas

Concepts or innovations generated within an organization or group.

Insignificant Point Of Difference

A differentiation feature of a product or service that is too minor to influence the purchasing decision of a target audience.

Advertising

A method of communication with the aim of persuading an audience to purchase products, services, or ideas.