Managers on a Fixed Salary Often Fall Victim to the Following

question 48

Multiple Choice

Managers on a fixed salary often fall victim to the following temptations:

• A)reduced effort, needless spending on perks or private benefits, and avoiding risks.
• B)reduced effort, needless spending on perks or private benefits, and entrenching investments.
• C)reduced effort, needless spending on perks or private benefits, empire building, and entrenching investments.
• D)reduced effort, needless spending on perks or private benefits, empire building, entrenching investments, and avoiding risks.

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Definitions:

Operating Income

The profit realized from a business's core operations, calculated before interest and taxes are deducted.

Break-even Point

The level of production or sales at which total costs equal total revenue, meaning no net loss or gain is incurred; a crucial financial analysis metric.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point.