Operating Leverage Measures

question 22

Multiple Choice

Operating leverage measures

• A) the effect of variable costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of sales.
• B) the effect of fixed operating costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of gross income.
• C) the effect of fixed operating costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of sales.
• D) none of the above.

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Definitions:

Site Location

The process of determining the most suitable location for a business or facility, considering factors like accessibility, cost, and demographics.

Gentrification

The process of renovating and improving a district so that it conforms to middle-class taste, often leading to the displacement of lower-income families.

Urban Blight

The deterioration and decay of buildings and areas in a city, often due to neglect, abandonment, or economic downturn.

Central Business Districts

Areas within a city where commercial, financial, and business activities are concentrated.