Finance

Finance Chapter 13 1. Operating leverage is change in gross revenue (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 perish see an EBIT increase and sales. The negative aspect is if the unit sales drop EBIT will decrease by a section greater than sales. 2. Yes, the total story of business risk that a company faces is a function of both sales and the full stop of operating cost. 3. Financial leverage is the additional volatility of suck up income caused by presence of fixed cost specie in the firms capital structure. Financial leverage post be volatility of the NI if the income changes.

There is always a percentage of business risk involved. 4. I cogitate the majority of your local mom& pop stores, chiefly smaller stores with limited customer. 5. Major corporations such as victuals social lion and Sear Roebuck. 6. Publicly owned corporations that has been brought start by in...If you destiny to get a full essay, govern it on our website: OrderEssay.net

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