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What is the operating leverage effect and what causes it? What are the potential benefits and negative consequences of high operating leverage?
The phrase operating leverage effect is the phenomenon whereby a small change in sales triggers a comparatively large change in operating income. It is origin by the existence of fixed operating costs. The potential advantages are that if sales are rising operating income will increase more quickly. The negative consequences are that falling sales will cause operating income to fall more rapidly, involving negative values.
CORPORATE GOVERNANCE Corporate governance can be stated in different ways, for example: The Private Sector Corporate Governance Trust (PSCGT) defines that corporate governan
Definition of 'Hedge Fund': An aggressively managed portfolio of investments that uses advanced investment strategies define as leveraged, short, long and derivative positions
how can an operating cycle be applied to a poultry business
1. Tax-backed debt and 2. Revenue bonds are two types of municipal bonds.
Solutions to shareholders and government agency problemquestion #Minimum 100 words accepted#
What is the meaning of Breakeven point?
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