How Are High Levels of Gearing Likely to Affect Managers

question 42

Multiple Choice

How are high levels of gearing likely to affect managers' motivation?

• A) The resulting low level of debt discourages managers.
• B) The resulting low level of debt encourages managers to perform better.
• C) The resulting high level of debt discourages managers.
• D) The resulting high level of debt encourages managers to perform better.

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Definitions:

Labor Productivity

An indicator of economic efficiency that evaluates the output of goods and services against the total labor hours required for production.

Labor

Labor describes the human effort, both physical and mental, used in the production of goods and services.

World Food Production

The total quantity of food produced globally, encompassing all agricultural activities aimed at growing crops and raising livestock.

Technological Improvements

Enhancements or upgrades in technological tools, systems, and procedures that increase efficiency or effectiveness.