Companies with High Operating Leverages Generally Have Lower Fixed Costs

question 140

True/False

Companies with high operating leverages generally have lower fixed costs than variable costs.

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Definitions:

Tea Act

Legislation passed by the British Parliament in 1773, aimed at bailing out the struggling East India Company by granting it a monopoly on the American tea trade.

British East India Company

A historical English company formed for the exploitation of trade with East and Southeast Asia and India, incorporated by royal charter in 1600.

American Colonies

The British territories in North America that declared independence in 1776 to form the United States of America.

Massachusetts Assembly

A legislative body in the state of Massachusetts with a history dating back to colonial times, responsible for creating state laws.