Ronald, the CEO of Extel Micro-A Technology Provider with 17,000

question 168

Multiple Choice

Ronald, the CEO of Extel Micro-a technology provider with 17,000 employees-answers his own phone and takes calls from employees of all levels. He actually loves to hear about what employees think the company is doing right and what they could be doing better. Ronald is building teamwork by

• A) creating an organizational culture that rewards listening.
• B) rewarding employees with cash bonuses for good ideas.
• C) giving high performers separate perks they value.
• D) bolstering employee fairness.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the portion of sales revenue that exceeds variable costs, indicating how sales affect profitability.

Fixed Expenses

A rephrased definition could focus on the costs that do not vary with the level of production or business activity, which may include long-term contractual obligations and basic operational costs.

Minimum Required Rate

Refers to the lowest acceptable rate of return on investment that a business or individual expects to achieve.

Turnover

In business, turnover is the total amount of revenue generated by a company from the sale of goods or services, or it can refer to the rate at which employees leave a business and are replaced by new employees.