Yes it does. The best way would be to talk to others outside of your comfort zone. When you meet new people who are different than you, you find out more about yourself. When you discover yourself you discover your strength and weaknesses and from that point, you improve yourself to be better.
True
It will inrease by 10%
Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage?"
To increase and decrease the leverage on the microscope.
Leverage, in the sense of this question, is borrowing money to help your business growth by buying new machinery, buying another business, etc. Leverage won't directly increase your business's profitability, it can be used to buy more than you can currently afford with cash reserves. If the new purchase will pay back the lender who gave you the money to purchase it, plus pay the costs of having it, with money left over then you have increased your profitability. If you changed the question to: 'How can borrowed money be used to increase an organization's profitability?' then you can see my point more clearly.
The machine has to leverage the original force in such a way as to multiply it.
The mechanical advantage of leverage all the power is increased.
no, not for loss making firms
The purpose of leverage in the forex market is to significantly increase the returns provided in an investment using instruments such as "Options" "Futures" and "Margin Accounts"
It's called "hedging" or also an attempt at market leverage. In the 80's a group attempted a silver halide leverage which vastly increased photographic imaging costs, including medical radiology. Went to jail for their efforts.
Operating leverage generally refers to revenues growing faster than expenses. This would be positive leverage. Companies with a largely fixed expense base have a lot of operating leverage (in both directions). If revenues are growing but expenses are flat, operating margins increase (positive operating leverage). If revenues decrease while expenses remain flat, operating margins decrease (negative operating leverage).
Leverage means to get more with little force as in physics. But in accounting it tells us how we can know from our sales that how much EBIT (earnings before interest and taxes) will be. In acc it is called degree of leverage and is calculated as DOL= contribution margin/EBIT For exp, if DOL=2 It means if we increase sale by 5% EBIT will increase by (2*5%) 10%. ok dear pray for me