The Higher a Project's Operating Leverage, _________________

question 55

Multiple Choice

The higher a project's operating leverage, _________________.

• A) The lower the sensitivity of EBIT to changes in revenue.
• B) The greater the sensitivity of EBITDA to changes in revenue.
• C) The lower the sensitivity of net profit to changes in variable costs.
• D) The greater the sensitivity of net profit to changes in variable costs.

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Definitions:

Expatriates

Individuals living outside their native country, often for professional reasons, to work in foreign offices or plants of their company.

Foreign Assignments

Work roles or projects assigned to employees which require them to live and work in a country different from their own.

American Employees

Workers employed in the United States, representing a diverse workforce subject to the labor laws and cultural practices of the country.

Cultural Discrimination

Prejudice or differential treatment based on cultural differences, often leading to the marginalization of a particular group.