--%>
Assignment Help - homework help

What does high or low operating leverage specify

What does high or low operating leverage specify?

E

Expert

Verified

Operating leverage specify about the company and its prospect profitability. It as well assists in assessing the level of risk that has been proposed to the investors. Throughout this investors can approximate the profitability in certain situations. High operating leverage specifies profits and it tells about the company's more money creating policies from each further sale if the raise cost does not rise to produce more sales while low operating leverage indicate the declining of profit margins and declining in earnings.

   Related Questions in Business Economics

  • Q : Limitation of building blocks for a

    Building blocks for a capitalist system would not consist of: (1) supplies and demands. (2) private property rights. (3) laissez-faire policies. (4) market-found prices and outputs. (5) distribution of income in accord along with the principle, &ldquo

    		•
  • Q : Competition among buyers and sellers is

    Illustrate Competition among buyers and sellers is a controlling mechanism?

    		•
  • Q : Explain about the arbitrage except

    Not like speculation, there arbitrage is: (w) an activity which is generally more lucrative when conditions are favorable. (x) a profitable and relatively riskless activity. (y) the process of representing a domestic company within fo

    		•
  • Q : Government Pegged Currencies Question:

    Question: If a government pegs the value of its currency to another currency, the government must stand ready to i. _________________________ the "hard" currency to defend the pegged value of its own currency. ii.

    		•
  • Q : Perfect competition leads the economic

    The perfectly competitive market structure benefits consumers since: w) firms do not generate goods at the lowest possible price within the long run. x) firms are forced through competitive pressure to be as efficient as possible. y) firms add a much

    		•
  • Q : Determine the productively efficiency

    To be productively efficient, a country should: (w) maximize the satisfaction attainable from its budget. (x) be concerned only with macroeconomic analysis. (y) concentrate on removing scarcity. (z) maximize the value of output produced through specif

    		•
  • Q : Why do governments enact trade barriers

    Why do governments enact trade barriers?

    		•
  • Q : Define the terms Plant Define the

    Define the following terms?

    		•
  • Q : Explain how Entrepreneurs are

    Explain how Entrepreneurs are risk-takers?

    		•
  • Q : Illustrate how Microeconomics looks at

    Illustrate how Microeconomics looks at specific economic units?

    		•