The Probability of Effectiveness of the Change Process Can Be

question 24

Multiple Choice

The probability of effectiveness of the change process can be increased through several techniques. Which of the following actions will likely increase effectiveness? (Select all that apply.)

• A) Explain the rationale for a change so that individuals understand it.
• B) Simply announce the change without laying a foundation.
• C) Give participants all the information they need.
• D) Rely only on formal authority in implementing change.
• E) Help individuals cope with change.

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Definitions:

WACC

Weighted Average Cost of Capital - a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

EBIT

Earnings before interest and taxes, a measure of a firm's profitability that excludes interest and income tax expenses.

Financial Leverage

The use of borrowed funds to increase the potential return on investment, amplifying both potential gains and losses.