Leading Involves

question 69

Multiple Choice

Leading involves

• A) mobilizing people to engage fully in their work.
• B) inspiring people to contribute their ideas.
• C) both mobilizing and inspiring people to engage fully in their work and contributing their ideas.
• D) motivating workers to come to work and execute top management's plans.
• E) analyzing day-to-day situations and involving workers in all decisions.

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Definitions:

Cash Break-even Point

The point at which a business's cash inflows equal its cash outflows, excluding financing.

Degree of Operating Leverage

A ratio that quantifies the sensitivity of a company's operating income to its sales, demonstrating the impact of fixed and variable costs on profitability.

Fixed Costs

Fixed costs that stay the same no matter how much is manufactured or sold, including expenses for rent, employee salaries, and insurance charges.

Hard Rationing

A situation where companies cannot obtain funds for projects despite having positive net present values due to external financing constraints.