Large-Scale Organizations Tend to Exhibit Specialization, Formalization, and Complexity

question 54

True/False

Large-scale organizations tend to exhibit specialization, formalization, and complexity.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold (COGS), indicating the profitability of a company's core business activities.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, used to evaluate financial leverage.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, indicating how much profit a company makes with its total sales.