Which of the Following Can Be Considered a Crude Measure

question 23

Multiple Choice

Which of the following can be considered a crude measure of operating risk?

• A) The margin of safety
• B) The operating leverage
• C) The indifference point
• D) The variable cost ratio

---

Definitions:

Liability

The condition of being accountable for certain actions, particularly in the context of legal or monetary commitments.

Federal Securities Acts

Laws enacted by the U.S. federal government designed to regulate the securities industry and protect investors from fraudulent practices.

Significant Losses

Large or impactful financial, material, or reputational reductions experienced by individuals, organizations, or entities.

Private Securities Litigation Reform Act

A 1995 United States federal law that increased the standards for initiating securities fraud litigation to protect companies from frivolous lawsuits.