Organizations Impart Certain Types of Knowledge to Employees Through Formal

question 33

Essay

Organizations impart certain types of knowledge to employees through formal training, whereas some forms of information cannot be communicated through such training. Identify and compare the two types of knowledge these represent.

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Definitions:

Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all operating expenses are deducted.

Return on Investment

A financial metric used to measure the efficiency of an investment, calculated by dividing the profit gained from the investment by its cost.

Residual Income

The amount of income that an individual has after all personal debts and expenses have been paid, often used in corporate finance to measure the excess of actual profit over the expected return on investment.

Operating Income

Earnings from a company's core business operations, excluding costs and revenues from financing and investments.