All Else Being Equal, a Company with a Low Operating

question 147

Multiple Choice

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

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

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Definitions:

Systolic Pressure

The highest blood pressure measured in the arteries during the contraction phase of the heart cycle.

Korotkoff Sounds

Sounds heard over an artery when blood pressure is determined by the auscultatory method; caused by turbulent flow of blood.

Azygos Vein

A vein running up the side of the thoracic vertebral column, draining blood from the chest wall and upper lumbar region into the superior vena cava.

Superior Vena Cava

A major vein carrying deoxygenated blood from the upper half of the body to the heart's right atrium.