Series 79 - Full EXAM (Missed) well answered 2024 latest

Series 79 - Full EXAM (Missed)A company that has high operating leverage would typically have ________________. Choose the BEST answer. Lower fixed costs Lower debt Higher fixed costs Higher debt - correct answer Higher Fixed Costs A company that has high operating leverage has high fixed costs and low variable costs. Fixed costs are assets such as property, plant, and equipment that don't vary with the amount of sales. Variable costs are costs that increase with increasing sales. A company with high operating leverage increases profit margins faster with increasing sales than a company with lower operating leverage. Software companies tend to have high operating leverage because once they have the software developed, it is relatively inexpensive to produce each piece of software. Thus, because the fixed costs change very little with increasing sales and there are low variable costs, a large portion of every dollar goes into profit. In contrast, a grocery store would have low operating leverage because as sales increase, more food needs to be purchased. Thus, as sales increase, costs also increase at a similar rate. Which of the following is true of a 363 sale? 2/3 of the creditors must vote for the sale At least 80% of company's assets must be sold in the sale It does not require approval of creditors At least 50% of company's assets must be sold in the sale - correct answer It does not require approval of the creditors A sale under Section 363 of the Bankruptcy code is a sale of assets in a bankruptcy case. The sale may involve a single asset or a 363 sale may encompass all of the bankrupt company's assets. In a 363 sale, the debtor or trustee files a bankruptcy motion in court, seeking approval for the proposed sale. The bankruptcy court will usually approve a sale if it represents a beneficial offer to the creditors. Unlike a reorganization plan, a 363 sale does not require approval of creditors and the sale could be completed as early as a few days. What would you typically NOT find in an