Jennifer Has Been the Top Sales Person in Her Department

question 29

Multiple Choice

Jennifer has been the top sales person in her department for years.It seems that every other month she wins the department's award for reaching sales goals.The department recently installed a new software program for entering sales.Jennifer has not taken time to learn the new system,preferring to spend her time on the phone making sales.Last month,the department manager decided that only sales entered into the new software would count toward the monthly award.Jennifer did not win an award this month.What Jennifer experienced was _________.

• A)positive reinforcement
• B)extinction
• C)punishment
• D)negative reinforcement

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Definitions:

Financial Leverage

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

Earnings Per Share (EPS)

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock.

EBIT

EBIT stands for earnings before interest and taxes, and it's a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Operating Leverage (DOL)

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