Describe High operating leverage
Briefly describe High operating leverage?
Expert
High operating leverage and high financial leverage points out the risky investment made by the company's shareholders. This as well points out that company is making few sales however with high margins. This shows the risk if a firm wrongly forecasts future sales. If the future sales have been scheming forecasted then it makes a differentiation between actual and budgeted cash flow that influences the company's future operating capacity. The financial leverage poses high risk when a company's return on assets does not surpass interest on loan, which lowers down company's profitability and return on equity.
Explain about Market Structures briefly.
Describe four important areas to emphasize Expenditures?
Why is it significant that economics is not a laboratory science? What problems may be evolved in deriving and applying economic principles?
A laissez-faire government is restricted to finding: (1) property rights within a simple fashion and to enforcing private contracts. (2) market prices which guarantee equitable resource allocations. (c) how resources will be allocated efficiently. (4)
Why possession protection of property rights and private property promotes the market system?
Transaction costs to ultimate consumers are reduced if: (w) consumers travel long distances to buy directly from manufacturers quite than buying the goods at local retail stores. (x) intermediaries generate income while conveying goods from manufactur
Illustrate the term Economic Rationale?
Is transfer income involved in national income? Explain Why? Answer: No, since transfer income does not effect in the production of services and goods.
Explain the slope of a straight line is the ratio of the vertical change to horizontal change between any two points on the line?
Explain: “Even though parking meters may yield little or no net revenue, because of the rationing function they perform nevertheless be retained”
18,76,764
1931048 Asked
3,689
Active Tutors
1461645
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!