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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.

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PREDECESSOR AUDITOR is the auditor of a client for a prior year who no longer audits that client.

VOLUME is the amount of trading activity, expressed in shares or dollars, experienced by a single security or the entire market within a specified period.

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