All Else Being Equal, a Company with a Low Operating

question 247

Multiple Choice

All else being equal, a company with a low operating leverage will have

• A)relatively high fixed costs.
• B)relatively high contribution margin ratio.
• C)relatively high risk.
• D)relatively high variable costs.

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Definitions:

Hepatic Portal Vein

A blood vessel that carries nutrient-rich blood from the gastrointestinal tract and spleen to the liver for processing.

Osmotic Pressure

The pressure required to prevent the flow of a solvent across a semipermeable membrane, which separates solutions of different concentrations.

Hydrostatic Pressure

The force caused by gravity that a stationary fluid exerts.

Capillary Bed

A network of capillaries, the smallest blood vessels, involved in the exchange of oxygen, carbon dioxide, and nutrients with tissues.