Which of the following statements is not true?
a. Operating leverage refers to the extent to which a company's net income reacts to a given change in sales.
b. Companies that have higher fixed costs relative to variable costs have higher operating leverage.
c. When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.
d. When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.
d. When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.
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A company would most likely use the Porter analysis for which of the following?
A) to determine whether or not to expand a brand into a new market segment B) to assess employee understanding of and commitment to company values C) to identify shifting cultural values relevant to the company's products D) to identify lobbying efforts with the highest likelihood of success E) to influence social movements relevant to the company's brands
________ refer to expenses incurred by the firm as it enters a new foreign market
A) Indirect costs B) Direct costs C) Opportunity costs D) Variable costs