Describe the Five Major Tasks of Management

question 79

Essay

Describe the five major tasks of management.

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Definitions:

Operating Leverage

measures a company's fixed costs relative to its total costs, indicating how a change in sales will affect its operating income.

Forecasting Error

Forecasting error refers to the difference between actual outcomes and previously predicted values, directly impacting planning and decision-making.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can leverage fixed costs.

Capital Intensive

Refers to industries or businesses that require large amounts of money to buy, maintain, or improve their assets such as property, plants, and equipment.