The Build,operate,transfer Option for Projects Requires the Project Contractor to Take

question 10

True/False

The build,operate,transfer option for projects requires the project contractor to take initial ownership of the project in order to make sure it works,thus mitigating risk in the short run.

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Definitions:

Cash Break-Even

It refers to the point at which a business generates just enough revenue to cover its operating expenses, indicating no profit or loss.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company’s operating income to its sales, indicating how a change in sales volume will impact operating income.

Forecasting Risk

The risk that a forecast may prove to be incorrect, potentially leading to financial losses or missed opportunities in financial markets.

Cost-Cutting Proposal

A plan or suggestion aimed at reducing expenses to improve profitability.