The Point of the ____ Is That Many Organizations Must

question 26

Multiple Choice

The point of the ____ is that many organizations must adopt frequent administrative changes and need to be structured differently from organizations that rely on frequent technical and product changes for competitive advantages.

• A) horizontal coordination model
• B) switching structure
• C) ambidextrous approach
• D) dual-core approach

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Definitions:

Operating Leverage

A financial ratio that measures the degree to which a firm or project can increase operating income by increasing revenue, highlighting the impact of fixed costs on profits.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period.

Operating Leverage

A financial ratio that measures the proportion of fixed costs to variable costs in a company's cost structure, indicating how revenue growth translates into growth in operating income.

EPS Variability

Fluctuations in a company's earnings per share over time, indicating the volatility of its profitability.