Which of the Following Types of Firms Would Typically Have

question 144

Multiple Choice

Which of the following types of firms would typically have the lowest level of operating leverage?

• A) Tile setter
• B) Automobile manufacturer
• C) E-commerce merchant
• D) Fast food restaurant chain

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Definitions:

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.

Delinquency Letter

A notification sent by a lender to the borrower indicating a missed payment and the start of delinquency.

Collection Agency

An organization tasked with pursuing payments of debts owed by individuals or businesses.

Legal Action

A step initiated in a court of law by an individual or entity to enforce or defend a legal right.