An Industry Can Be Defmed as a Group Of

question 29

Multiple Choice

An industry can be defmed as a group of:

• A)companies offering products or services that are close substitutes for each other.
• B)manufacturing plants of a single company.
• C)different kinds of companies that are based in the same geographic location.
• D)companies that are different but generate similar amounts of revenues.
• E)brands that offer different products but are owned by a single finn.

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Definitions:

Operating Leverage

Operating leverage refers to the degree to which a company can increase operating income by increasing sales, highlighting the impact of fixed versus variable costs.

Operating Income

The profit realized from a business's operational activities, calculated before interest and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profit by increasing sales.

Variable Costs

Charges that shift in alignment with the volume of production or service tasks.