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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Definitions:

Hastorf and Cantril

Hastorf and Cantril are known for their study on perceptual bias and social perception, illustrating how individuals' interpretations of an event can be biased by their loyalties.

Rule Infraction

The act of violating or breaking established rules or guidelines.

Subjectivity of Perception

The idea that individual experiences and biases affect how one perceives the world, making perception a highly personal experience.

Population

In statistics and demography, a group of individuals, objects, or events that share common characteristics and are studied to understand trends and patterns.