Which of the Following Statements Is True Regarding Operating Leverage

question 30

Multiple Choice

Which of the following statements is true regarding operating leverage?

• A)Companies with high operating leverage will earn lower profits than companies with low operating leverage.
• B)Companies with high operating leverage will earn higher profits than companies with low operating leverage.
• C)Companies with high operating leverage generally experience fewer profit fluctuations as sales fluctuate than do companies with low operating leverage.
• D)Companies with high operating leverage generally experience larger operating profit fluctuations as sales fluctuate than do companies with low operating leverage
• E)None of the answer choices is correct.

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Definitions:

Fluid Societies

Societies characterized by flexibility and adaptability in their social structures, allowing for greater mobility and change among their members.

Inequality

The unequal distribution of resources, opportunities, and privileges among individuals or groups, often based on characteristics like wealth, income, race, education, and gender.

Intergenerational Mobility

Is social mobility that occurs between generations.

Intragenerational Mobility

Is social mobility that occurs within a single generation.