Operating Leverage ____ as the Volatility of Operating Earnings ____

question 36

Multiple Choice

Operating leverage ____ as the volatility of operating earnings ____.

• A) increases, increases
• B) decreases, increases
• C) increases, decreases
• D) remains the same, increases

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Definitions:

Implicit Motives

Describes unconscious desires, needs, or aspirations that influence an individual's behavior.

Explicit Motives

Refers to motivations that are consciously recognized and can be verbally expressed by an individual.

Cognitive Performance

The ability to perform tasks that require attention, memory, reasoning, problem solving, and decision-making.

Power Motive

A psychological drive that influences a person's desire to attain control, influence, or authority over others.