General Knowledge · Financial Management
Assertion (A): High operating leverage increases business risk. Reason (R): Fixed operating costs magnify EBIT fluctuations. Based on the statements above, select the correct option.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Both A and R are true and R is the correct explanation of A✓
- 2Both A and R are true but R is not the correct explanation of A
- 3A is true but R is false
- 4A is false but R is true
Correct answer
Both A and R are true and R is the correct explanation of A
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for General Knowledge?
Practice full-length General Knowledge mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Management MCQs →Want more practice questions on Financial Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Knowledge · Financial Management