Operating leverage helps in the analysis of __________.

Business Risk

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Financing Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Production Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credit Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Business Risk
A higher proportion of higher fixed cost in the production process means that the operating leverage is higher and the company has more business risk.

Suggest Corrections

Similar questions

A greater degree to which operations are funded by borrowed money means a greater risk of bankruptcy if business declines. True or False

Explain the following features of business risk.

(a) Business risks arise due to uncertainties

(b) Risk is an essential part of every business

Join BYJU'S Learning Program