Suppose a Firm Uses a High Degree of Operating Leverage

question 88

True/False

Suppose a firm uses a high degree of operating leverage and operates in an industry whose sales are greatly affected by changes in the overall level of economic activity.The riskiness of that firm's earnings stream will likely be greater than the earnings of a firm in the same industry which has a lower degree of operating leverage.

---

Definitions:

Specified Format

A detailed or structured format pre-defined for a particular type of document or data.

Problem-oriented Recording

Documentation method in healthcare and social services focusing on identifying problems, planning interventions, and evaluating outcomes.

Demographic Characteristics

The statistical attributes of populations, such as age, race, gender, income level, education, and employment, used for research and policy-making.

Treatment Plans

Structured outlines developed by healthcare professionals detailing the strategies and interventions for addressing an individual's health or behavioral issues.