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ACME Software Inc

question 133

Multiple Choice

ACME Software Inc.has developed a training program to make employees more aware of how their job performance affects customers and other employees within the organization.This training program relates most closely with which of the following concepts?


Definitions:

Operating Leverage

A gauge of the relationship between sales growth and the growth of operational earnings, showing the mix of fixed and variable costs within a business.

Financial Leverage

The use of borrowed funds to finance investments, aiming to increase the potential return to equity holders.

Business Risk

The exposure a company or investor faces from uncertainties that may impact its operations and profitability.

Financial Risk

The possibility of losing money or financial assets due to factors affecting financial markets, investment decisions, or company performance.

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