Even Though Amy Is the Leader of a Team, She

question 60

Multiple Choice

Even though Amy is the leader of a team, she finds it very hard to make decisions on her own. She often asks her colleagues for their opinion on matters that come up and relies on these inputs to make the final decision. Which of the following decision-making orientations does Amy have?

• A) marketing-oriented
• B) hoarding
• C) indecisive
• D) exploitative
• E) receptive

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently equity is used to generate profits.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, typically represented by the value of all assets minus current liabilities.

Financial Leverage

The use of borrowed funds to increase the potential return on investment, often measured by the ratio of a company’s debt to equity.

Financial Leverage

Financial leverage refers to the use of borrowed funds to increase the potential return of an investment, amplifying both potential gains and losses.