Solved

All Else Being Equal, This Is True About a Firm

Question 35

Multiple Choice

All else being equal, this is true about a firm with high operating leverage relative to a firm with low operating leverage:


A) A higher percentage of the high operating leverage firm's costs are fixed
B) The debt payments limit the high operating leverage firm's opportunities to turn a big profit
C) The high operating leverage firm has more debt
D) The high operating leverage firm is exposed to less risk

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents