Which of the Following Steps Should a Company's Plan of Action

question 45

Multiple Choice

Which of the following steps should a company's plan of action for a crisis include?

• A)It should account for all possible crises.
• B)It should safeguard only the top management.
• C)It should identify who will need to be blamed for a crisis.
• D)It should establish emergency procedures.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a percentage of its previous value.

Net Operating Income

The profit generated from normal business operations, excluding expenses from interest and taxes.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.