Question $(2)$

Which statements are correct about operating expense percentage?

It is a financial indicator over which management can exert significant control over the longer term.

As management's control over operating expenses improves, the business's operating expense percentage declines and cash flow improves.

It is a financial indicator that is unaffected by changes in the competitive environment.

It is a risk $($cash$)$ driver over which management typically has little influence.

$1$ and $2$ only.

$1$ and $3$ only.

$2$ and $4$ only.

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