If the Economy Is Shrinking,firms with Low Operating Leverage Will

question 29

Multiple Choice

If the economy is shrinking,firms with low operating leverage will experience __________.

• A)higher decreases in profits than firms with high operating leverage
• B)similar decreases in profits as firms with high operating leverage
• C)smaller decreases in profits than firms with high operating leverage
• D)no change in profits
• E)none of the above

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Definitions:

Numerals

Symbols or characters used to represent numbers.

Adding

The mathematical process of combining two or more quantities to get a total or sum.

Borrowing

The act of receiving something from someone with the intention of returning it or its equivalent later.

Decimals

Numerical symbols used in the decimal system, involving a point that separates the whole number from the fractional part.