A Managerial Preference for a Very Low Degree of Operating

question 65

Multiple Choice

A managerial preference for a very low degree of operating leverage might indicate that

• A)an increase in sales volume is expected.
• B)a decrease in sales volume is expected.
• C)the firm is very unprofitable.
• D)the firm has very high fixed costs.

---

Definitions:

Pilot Project

A small-scale, preliminary study conducted to evaluate feasibility, duration, cost, and adverse events, used to predict the potential of a larger initiative.

Diffusion Of Change

Refers to the process by which new ideas, products, or practices are spread within a society or from one society to another.

Stress Management

Techniques and practices individuals use to reduce, manage, and cope with stress.

Coercion

The practice of persuading someone to do something by using force or threats.