In Low Power Distance Cultures

question 53

Multiple Choice

In low power distance cultures,

• A) people accept differences in power as normal.
• B) people believe that all people are created equal.
• C) people of privilege and wealth have much more power.
• D) people accept and rarely challenge authority.
• E) the government, corporations, and religious authorities may dictate rules of behavior and have the power to ensure compliance.

---

Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Break-Even Point

The sales level at which total revenues equal total costs, resulting in no profit but no loss.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, showing how much contributes to fixed expenses and profits.

Sales Mix

Sales mix refers to the proportion of different products or services sold by a company, impacting its overall profitability and performance.