In General, How Do Leaders Exercise Legitimate Power

question 101

Multiple Choice

In general, how do leaders exercise legitimate power?

• A)Issuing formal requests
• B)Maintaining credibility
• C)Making requests in a demanding tone
• D)Keeping aware of information that is relevant and that may be needed by the organization
• E)Keeping aware of subordinates' actions

Evaluate the impact of changes in cost structure and sales on a company's financial performance.

Understand and apply the concept of margin of safety and its importance in business.

Compute and analyze contribution margin and contribution margin ratio for single and multiple product companies.

Calculate break-even points in units and dollars for both single and multiple product scenarios.

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Definitions:

Administrative Fee

Charges imposed by investment funds or companies to cover operational and management expenses.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Revolving Credit Agreement

A banking agreement that allows the borrower to withdraw, repay, and redraw loans advanced to them up to a specified amount.