One Result of the Information Revolution Is That

question 13

Multiple Choice

One result of the information revolution is that:

• A) decision making has been shifted downward to lower levels of management.
• B) control has been shifted upward to higher levels of management.
• C) managers need to cope with stagnancy of operations in all types of economic activities.
• D) supervisors have access to limited types and sources of information.

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Definitions:

Capital Structure

The particular combination of debt and equity used by a company to finance its overall operations and growth.

Cost Structure

The mix of fixed and variable cost used by a firm.

Financial Leverage

Utilizing borrowed funds to amplify the prospective gains of an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, affecting its earnings before interest and taxes (EBIT) with changes in sales.