A Firm with High Operating Leverage Has

question 48

Multiple Choice

A firm with high operating leverage has:

• A)low fixed costs in its production process.
• B)high variable costs in its production process.
• C)high fixed costs in its production process.
• D)high total costs per unit.
• E)low total costs per unit.

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Definitions:

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The framework or strategies used in managing or aligning the operations and policies of different teams, departments, or organizations to achieve a common goal.

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A comprehensive plan developed by businesses to operate and compete on an international scale.

Multinational Company

A corporation that operates in several countries beyond its original country of incorporation, often having a global presence.

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The involvement of college and university students in campaigns and movements aimed at bringing about social, political, or environmental change.