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As compared to firms with high degree of financial leverage, firms with high degree of operating leverage:?

A. can easily emerge as a going concern by using bankruptcy laws andprotection.

B. are less flexible in making changes and bankruptcy protection help little to reduce operating costs.

C. do not lead to major dislocations in the rights and privileges of owners,lenders and management.

Project Finance Accounting Cash Flow Forecasting Financial Systems Feasibility Studies
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/01
Upvote (2) Views (5) Followers (4) Answers (4) Report Question
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, option B is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

I guess option B=====================

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is A) can easily emerge as a going concern by using bankruptcy laws and protection.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

B-------------------------------------------------------

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