Types of companies likely to have high operating leverage, Financial Management

Assignment Help:

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. 

 

 

 


Related Discussions:- Types of companies likely to have high operating leverage

Scope of the content of the finance function, Q. Scope of the content of th...

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

Integration of economic, a) Globalisation refers to the interdependence and...

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, DEFINITION OF FINANCIAL MANAGEMENT ...

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, Accounting Framework  - ...

Accounting Framework  - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies

Finance, Ashok is to receive an amount of Rs. 15,00,000 from his relative a...

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

Operating cycle, Explain the operating cycle of a vegetable growing busines...

Explain the operating cycle of a vegetable growing business

Define double-entry bookkeeping, Q. Define Double-Entry Bookkeeping? Do...

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

Risk analysis, Your broker calls to offer you the investment opportunity of...

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

Calculate the exchange exposure faced by the u.s. company, A U.S. company h...

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, Interpretations of Profitability...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd