Statement I: Operating leverage arises because of the presence of fixed operating costs in the cost structure of a firm. Statement II: Financial leverage arises due to the use of fixed financial charges such as interest on debt.

Question

Economics · Financial Management

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Both Statement I and Statement II are correct

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Financial Management?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Financial Management

Mahatma Gandhi's last fast unto death in 1948 was primarily against which of the following?

What was the primary meaning of 'Swaraj' as popularized by Mahatma Gandhi during India's independence movement?

What was one major impact of India’s independence on its economy?

Answer 1

Both Statement I and Statement II are correct

Answer 2

Statement I is correct but Statement II is incorrect

Answer 3

Statement I is incorrect but Statement II is correct

Answer 4

Both Statement I and Statement II are incorrect

Related Practice Questions