In What Type of Organizational Structure Is Empowerment Most Crucial

question 118

Multiple Choice

In what type of organizational structure is empowerment most crucial?

• A) Bureaucratic
• B) Team
• C) Simple
• D) Functional

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Margin of Safety

This measures the difference between actual sales and sales at the break-even point, indicating the amount by which sales can drop before losses start occurring.

CVP Analysis

Cost-Volume-Profit Analysis, a business management tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

refers to the composition of different products or services sold, impacting overall sales and profitability.