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:

Charge Of Negligence

An accusation made against an individual or entity for failing to act with the care that a reasonably prudent person would have in the same circumstances.

Lawfully

In a manner that is in accordance with the law, legally permitted or authorized.

Duty To Act

A legal obligation that requires a person to take a certain action or perform a certain duty, often in emergency situations to avoid liability for harm caused by nonaction.

Innocent Conduct

Actions or behavior that are performed without malice or intent to harm, often considered in legal contexts to determine culpability or liability.