Herma's Parents Are Warm but Overindulgent and Inattentive

question 72

Multiple Choice

Herma's parents are warm but overindulgent and inattentive.They make few demands for maturity.They permit Herma to make many decisions before she is ready.Herma's parents have a(n) __________ style of child rearing.

• A) authoritative
• B) authoritarian
• C) permissive
• D) uninvolved

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Margin of Safety

This measures the difference between actual sales and sales at the break-even point, indicating the amount by which sales can drop before losses start occurring.

CVP Analysis

Cost-Volume-Profit Analysis, a business management tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

refers to the composition of different products or services sold, impacting overall sales and profitability.