Would You Expect the Following to Be High or Low

question 66

Multiple Choice

Would you expect the following to be high or low in an automated firm: (1) level of fixed costs, (2) level of risk and (3) break-even point?

• A) High, high, high
• B) Low, high low
• C) High, high, low
• D) Low, low, high

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Definitions:

Rate Of Return

The increase or decrease in the value of an investment during a specific time frame, represented as a proportion of the original investment's price.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Acid Test Ratio

A stringent indicator of a company's liquidity, measuring its ability to meet short-term obligations with its most liquid assets.

Current Liabilities

financial obligations that a company owes and is expected to pay within the next year or within its normal operating cycle if longer.