1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Most organizations strive to resolve between _______ of requests at the first level of support in less than an hour.
Bingel [31]
The answer in the space provided is seventy five to eighty five percent because this is only the likely percentage that the organization strive because this extends to their capabilities and that this occurs at the first level of support in less than an hour when they undergone through this process.

5 0
3 years ago
HELP!! : Could a sales representative easily translate his or her skills into being a buyer? What would be
Lunna [17]

Answer:

Yes, a sales representative can translate his skills into being a buyer

Explanation:

A sales representative is one who completes a sale of a product in a direct or face to face interaction with the buyer.

Skills of a good sales representative includes:

1. Product knowledge

2. Strategic prospecting skills

3. Active listening

4. Communication

5. Good time management

A sales representative can convert all these skills listed above into becoming a better judge of a product as a buyer and in relation with other sales representatives.

One of the challenging thing about the shift would be the ability to trust another sales representative's words about a product or service.

The skill that would translate seamlessly would be product knowledge because if a sales rep already have a good knowledge of a product before it would greatly enhance his choices when choosing one for himself.

3 0
3 years ago
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in p
galben [10]

Answer:

See explanation below as attached.

Explanation:

1. Predetermined overhead is 139% of direct labor hour

2. Under applied overhead is $6,200

Please find attached breakdown and solution to question 1, 2, 3, 4 and 5.

5 0
3 years ago
Which of the following are criteria for determining whether to record an asset as a fixed asset? a.must be short-lived and tangi
Brut [27]

Answer:

The correct answer is letter "D": must be long-lived and used by the company in its normal operations.

Explanation:

Fixed assets are tangible resources used by a corporation to produce profits. To qualify as a fixed asset, the item can not be consumed or sold in less than one year and be part of the daily operations of the business. Fixed assets are listed on the balance sheet of the company and are subject to depreciation.

Examples of fixed assets include <em>buildings, factories, leasehold improvements, computers, electronic hardware, furniture, automobiles, </em>and <em>construction equipment.</em>

5 0
3 years ago
Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A share of stock sells fo
Ugo [173]

Answer:

New price (P1) = $72.88

Explanation:

Given:

Risk-free rate of interest (Rf) = 5%

Expected rate of market return (Rm) = 17%

Old price (P0) = $64

Dividend (D) = $2

Beta (β) = 1.0

New price (P1) = ?

Computation of expected rate on return:

Expected rate on return (r) = Rf + β(Rm - Rf)

Expected rate on return (r) = 5% + 1.0(17% - 5%)

Expected rate on return (r) = 5% + 1.0(12%)

Expected rate on return (r) = 5% + 12%

Expected rate on return (r) = 17%

Computation:

Expected rate on return (r) = (D + P1 - P0) / P0

17% = ($2 + P1 - $64) / $64

0.17 = (2 + P1 - $64) / $64

10.88 = P1 - $62

New price (P1) = $72.88

7 0
3 years ago
Other questions:
  • Weather speech is going to be delivered before one or 100 people this speaker should
    8·1 answer
  • What is a sweatshop??
    7·2 answers
  • ABC common stock has been moving up recently and one of your clients purchased several hundred share of the stock this morning.
    8·1 answer
  • In regard to an operating budget identifiable costs may generally include _________.
    9·1 answer
  • Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government p
    10·1 answer
  • On April 1, the price of gas at Bob’s Corner Station was $4.95 per gallon. On May 1, the price was $5.45 per gallon. On June 1,
    14·1 answer
  • When marketing managers attempt to identify "Key Success Factors" they typically are engaged in the _________________ component
    8·1 answer
  • Which of these statements best represents the law of supply? select one:
    8·1 answer
  • If the exports (in million $) for the period 2006 through 2010 were $878, $892, $864, $870, and $912, respectively, what are the
    8·1 answer
  • a) Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressu
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!