High Operating Leverage Is a Measure of the Risk of Change

question 30

Multiple Choice

High operating leverage is a measure of the risk of change in profit a firm assumes when it has relatively:

• A)High variable cost.
• B)High fixed cost.
• C)High sales.
• D)High turnover.
• E)High sales expectations.

---

Definitions:

Psychodynamic Perspective

Modern version of psychoanalysis that is more focused on the development of a sense of self and the discovery of motivations behind a person’s behavior other than sexual motivations.

Self-Actualization

Achieving the maximum expression of one's talents and potentialities, seen as an instinctive urge or requirement prevalent across all individuals.

Free Will

The concept or belief that individuals have the ability to make choices that are not predetermined by past events, genetic makeup, or environmental factors.

Psychodynamic Approach

A psychological perspective that emphasizes the influence of unconscious forces and childhood experiences on behavior and mental processes.