A Company with a High Operating Leverage Will Experience a Large

question 115

True/False

A company with a high operating leverage will experience a large percentage change in operating income as a result of a small percentage change in sales.

---

Definitions:

Discontinuous Innovation

A groundbreaking innovation that significantly changes existing markets or creates new ones by introducing a novel product or service.

Continuous Innovation

Ongoing efforts to improve products, services, or processes, which can help organizations stay competitive and meet customers’ evolving needs.

Dynamically Continuous Innovation

Dynamically continuous innovation involves significant changes to existing products or processes, making improvements while not requiring consumers to learn entirely new behaviors.

Discontinuous Innovation

A type of innovation that creates a significant change and often creates a completely new market or drastically alters an existing one.