Maneesh 30 April 2020 at 15:42 PM

ABC Inc., a small but growing product assembler, has been able to profitably ride the ups and downs of several economic cycles, largely due to its low level of long-term assets. The firm relies more heavily on labor than its competitors, and contracts for needed facilities only on a short-term lease basis. Working capital is largely provided through short-term loans. Although ABC's variable costs are much higher than its competitors’ variable costs, its income is much less volatile. All of the above factors are consistent with ABC  having a lower level of financial and operating
A) Margin
C) Leverage

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FACULTY 10 May 2020 at 04:21 PM

Leverage (option C)

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