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dedylja [7]
2 years ago
6

Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal wo

rkings of the company while financing deals with outside parties. True or False ?
Business
1 answer:
zzz [600]2 years ago
7 0

Answer: FALSE

               

Explanation: In simple words, operating leverage refers to the criteria which shows how much operating income can be increase by increasing the revenue of a project. Whereas, financial leverage refers to the level of debt that a firm has acquired for financing its operations.

The management of a company can easily control financial leverage as it is in their hands to issue or redeem debt. On the other hand, increase or decrease in operating income is dependent on various external factor.

Hence the given statement is false.

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Runyon Inc. reported the following results from last year’s operations: Sales $ 16,800,000 Variable expenses 12,230,000 Contribu
Andre45 [30]

Answer:

Turnover is equal to 2.40

Explanation:

Consider the following equation to calculate the turnover

Turnover = Sales /Average operating assets

= 16.800.000/7000000=

2.4

<em />

<em>Turnover is an accounting concept that calculates how quickly a business conducts its operations.</em>

 

4 0
3 years ago
George is a captive agent with the Englewood Insurance Company. Being a captive agent means he has signed a
Olegator [25]

True

A captive agent means they have signed a contract to stay with the company for that many number of years

5 0
3 years ago
a company announces that it is buying back 10% of its common shares in the open market. the company currently pays no dividends
Marina CMI [18]

P/E choice decrease

When companies buy rear their own stock, it decreases the numbers of claims outstanding. Earnings per share are computed as net income divided by number of shares great. If the number of shares outstanding declines while net revenue stays the same, EPS will increase. If EPS increases while the stock price stays the identical, the price/earnings ratio (P/E) will fall.

<h3>What are stock earnings?</h3>

Earnings refer to a company's earnings in a given quarter or fiscal year. Earnings are a key figure used to select a stock's value. A company's profits are used in many standard ratios. Payments have a big influence on stock price, and as a consequence, the numbers are subject to potential manipulation.

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7 0
1 year ago
The impact of inflation in businesses​
levacccp [35]

Answer:

Rapidly rising prices not only affect the price consumers pay, they also affect the cost businesses have to pay for materials and inventory. When replacement inventory costs more than the inventory you just sold, it can lead to inventory shortages.

Explanation:

I hope it helped

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3 years ago
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