One Factor That Can Affect the Market Risk of a Project

question 50

Multiple Choice

One factor that can affect the market risk of a project is its degree of operating leverage,which is:

• A)the relative proportion of operating assets versus non-operating assets.
• B)the relative proportion of operating assets versus equity.
• C)the relative proportion of operating expenses versus non-operating expenses.
• D)the relative proportion of fixed versus variable costs.

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Definitions:

Space Heating

The process of providing heat to interior spaces for the purpose of ensuring comfort for occupants, typically accomplished through systems such as furnaces, heat pumps, or radiators.

Net Energy

The amount of energy available after subtracting the energy expended to obtain and use that energy.

Liquefied Petroleum Gas

A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles, commonly known as LPG.

Butane

A gaseous hydrocarbon (C4H10) that is a constituent of natural gas and petroleum, used as a fuel and in the manufacture of organic compounds.