OPERATIONAL GEARING Definition

Bookmark and Share

OPERATIONAL GEARING is the higher the proportion of fixed costs relative to variable operating costs, the higher the operational gearing. This results in greater business risk. A retailer has high fixed costs relative to variable costs, so has a lot of business risk. See GEARING and FINANCIAL GEARING.

Learn new Accounting Terms

HYPOTHECATION, in securities, is the pledging of securities to brokers as collateral for loans made to cover short sales or purchase securities. In banking, it is the pledging of property to secure a loan.

TRANSCRIPT is a written record (usually typewritten) of dictated or recorded speech

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.