Which of the Following Best Describes Operating Income

question 111

Multiple Choice

Which of the following best describes operating income?

• A)It includes the results of discontinued operations.
• B)It is before operating expenses.
• C)It is sales minus cost of goods sold and income tax expense.
• D)It is net sales minus cost of goods sold and operating expenses.

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Definitions:

Leadership Substitutes Theory

A theory proposing that certain characteristics of the situation, task, or subordinates themselves can substitute for leadership, rendering it unnecessary.

Servant Leadership

A leadership philosophy that focuses on serving the needs of others first, prioritizing the well-being and development of employees over other considerations.

Path-goal Leadership Theory

A theory suggesting that the leader's role is to clear the path towards the goal by addressing obstacles and providing support to increase follower motivation.

Directive Leadership

A leadership style characterized by leaders who give instructions, set clear goals, and expect compliance from their subordinates.