A Firm with High Operating Leverage Has

question 21

Multiple Choice

A firm with high operating leverage has:

• A) low amounts of fixed cost in their production process.
• B) high amounts of variable cost in their production process.
• C) high amounts of fixed cost in their production process.
• D) high price per unit.
• E) low price per unit.

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Definitions:

Geocentric Staffing Model

A staffing approach used by multinational companies where the best employees, regardless of nationality, are appointed to positions worldwide.

Human Resource Management

The strategic approach to the effective management of people in an organization to help it gain a competitive advantage.

Power Distance

A cultural dimension that describes the extent to which individuals in a society accept the distribution of power as being unequal or hierarchical.

Geert Hofstede

A social psychologist from the Netherlands famous for his work on groups and organizations across cultures, especially known for creating the theory of cultural dimensions.