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Please make sure you list a company and then example with it Part 1 - List a company that you either admire, you're interested in
Please make sure you list a company and then example with it
Part 1 - List a company that you either admire, you're interested in studying, or you'd like to own one day. Would you rather that company operate as a highly leveraged company, or a company with a smaller leverage ratio? This is another way of asking the question we presented in class last week. If a company had $100,000 in expenses, would you rather be the company with a lot of fixed costs (say $90,000 in fixed costs and $10,000 in variable costs) or the other way, with a lot of variable costs and a small amount of fixed costs (say $10,000 in fixed costs and $90,000 in variable costs)? Remember that's no "right" answer, so explain your choice and most importantly, why. It could depend on the type of business you've chosen. Part 1 - List a company that you either admire, you're interested in studying, or you'd like to own one day. Would you rather that company operate as a highly leveraged company, or a company with a smaller leverage ratio? This is another way of asking the question we presented in class last week. If a company had $100,000 in expenses, would you rather be the company with a lot of fixed costs (say $90,000 in fixed costs and $10,000 in variable costs) or the other way, with a lot of variable costs and a small amount of fixed costs (say $10,000 in fixed costs and $90,000 in variable costs)? Remember that's no "right" answer, so explain your choice and most importantly, why. It could depend on the type of business you've chosenStep by Step Solution
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