Finance

Finance Chapter 13 1. Operating leverage is change in gross sales (small), which triggers a change in operating income. They be caused by fixed cost in the operation firm. A firm with a high operating leverage allow for see an EBIT increase and sales. The negative aspect is if the unit sales drop EBIT will decrease by a component part greater than sales. 2. Yes, the total story of business risk that a company faces is a function of both sales and the stage of operating cost. 3. Financial leverage is the additional volatility of form up income caused by presence of fixed cost funds in the firms capital structure. Financial leverage post be volatility of the NI if the income changes.

There is forever a percentage of business risk involved. 4. I think the majority of your local mom& pop stores, in the first place smaller stores with limited customer. 5. Major corporations such as food for thought social lion and Sear Roebuck. 6. Publicly owned corporations that has been brought let on by in...If you destiny to get a full essay, pasture it on our website: BestEssayCheap.com

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