Examlex
The city of St. Louis is encouraging its residents to drink tap water instead of filling its landfills with plastic water bottles, even though some consumers prefer the convenience of plastic water bottles. This is an example of:
Operating Income
Income generated from regular business operations, excluding non-operating activities like investment income.
Total Leverage
The combined effect of using both operating and financial leverage on a company's earnings per share.
Financial Leverage
Employing leveraged capital to enhance the expected returns on an investment.
Operating Leverage
The degree to which a company uses fixed operating costs, whereby a small change in sales significantly affects profitability.
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