To Encourage Change and Innovation, Organizations

question 44

Multiple Choice

To encourage change and innovation, organizations:

• A) reject quick wins in favor of long-term benefits.
• B) avoid the use of lateral thinking.
• C) encourage employee resistance.
• D) strive to hire people who display creative characteristics.

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Definitions:

Fixed Costs

Costs that remain consistent for a company irrespective of how much goods or services it produces.

Financial Leverage

Financial leverage is the use of borrowed funds to increase the potential return of an investment.

Breakeven Analysis

A financial calculation to determine the point at which revenue and expenses are equal, resulting in no net loss or gain.

Financial Leverage

The use of borrowed funds to finance the purchase of assets with the expectation that the income or capital gain from the new assets will exceed the cost of borrowing.