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Operating Leverage
Operating leverage define the degree to which an organization cost of operation is fixed as opposed to variable. Therefore, it is a measure of how much a firm's profits can be expected to change when sales rise. Firms with a high degree of operating leverage will experience greater changes in profitability when sales change. Mostly, organization with high operating leverage will maintain low levels of debt, or financial leverage.
What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?
Bid The price buyers provide to acquire securities or privacy from sellers.
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