Why Are Transformational Leaders More Likely to Be Successful in Today's

question 41

Essay

Why are transformational leaders more likely to be successful in today's business climate than transactional leaders?

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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.

Variable Expenses

Expenses that fluctuate with changes in production volume or business activity levels, including materials, labor, and utilities.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profit.

Variable Manufacturing Costs

Charges that fluctuate based on the volume of production, like components used in product assembly and wages for workers on the production line.