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Give two examples of types of companies likely to have high operating leverage.Find examples other than those cited in the chapter.
Long distance electricity generating companies and telephone companies are likely to have operating leverage. These two kinds of companies have very high fixed costs for the reason that they are capital intensive and have relatively low variable costs.
Q. Scope of the content of the finance function? 1) Estimating of the finance requirement: the first task of a finance manager is to estimate and short terms and long terms fin
a) Globalisation refers to the interdependence and integration of economic, social and politic issues (services, goods, people and capital), across the world. For example, consumer
DEFINITION OF FINANCIAL MANAGEMENT Financial Management is a stream concerned with the generation and allotment of scarce resources (generally funds) to the most proficient use
Accounting Framework - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies
Ashok is to receive an amount of Rs. 15,00,000 from his relative after 3 years. He wants to buy a house for which he wants the money to be paid now. His relative had al
Explain the operating cycle of a vegetable growing business
Q. Define Double-Entry Bookkeeping? Double-Entry Bookkeeping - Method of recording financial transactions in that every transaction is entered in two or more accounts and inclu
Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage-backed securities. The broker explains that these securities are entitled
A U.S. company holds an asset in France and faces the subsequent scenario: State 1 State 2 State 3 State 4
Interpretations of Profitability Ratio's - ROA: ROA or the Return on Assets ratio is the ratio of net profit to total assets and this ratio indicates whether total assets
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