Which One of the Following Will Best Reduce the Risk

question 85

Multiple Choice

Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage?

• A)hiring temporary workers from an employment agency rather than hiring part-time production employees
• B)subcontracting portions of the project rather than purchasing new equipment to do all the work in-house
• C)leasing equipment on a long-term basis rather than buying equipment
• D)lowering the projected selling price per unit
• E)changing the proposed labor-intensive production method to a more capital intensive method

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Contributions to a cause or charity based on a percentage of sales revenues.

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Practices by companies that involve initiatives that benefit society and go beyond what may be required by regulators or environmental protection groups.