The Below Are True for the Decision Function of Leadership

question 4

Multiple Choice

The below are true for the decision function of leadership: Please select all that apply.

• A) A leader takes decisions with a view to making the priorities for participants' attention clear.
• B) A leader possesses sufficient industry-specific knowledge to allow him or her to identify changes in their environment into the correct attention focus for participants of the organization.
• C) A leader possesses sufficient industry-specific knowledge to allow him or her to translate changes in their environment into the correct attention focus for participants of the organization.
• D) Leadership decisions guide and modify individuals' behaviour by focusing on the areas where they want individuals to apply their attention.

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Definitions:

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.

Fixed Expenses

Costs that remain constant for a set period and do not vary with changes in activity level, production volume, or sales, such as lease payments and utility bills. This is a rephrased definition of Fixed Costs.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Contribution Margin

The difference between sales revenue and variable costs, serving as a measure to assess the profitability of products or services.