The Members of the New Product Team at Infections International

question 4

Multiple Choice

The members of the new product team at Infections International have a norm of backing up each of their computer's hard drives at the end of each working day.This norm developed because one day a computer virus infected the team's computer network and destroyed many important computer files.The cause of this norm was clearly:

• A) an explicit statement
• B) carryover behaviours
• C) Primacy
• D) a critical event
• E) None of these choices.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into an increase in operating income, indicating the extent to which a company can increase profitability by increasing sales.

Financial Leverage

The use of borrowed funds in an attempt to increase the returns to equity.

Fixed Costs

For expenses like rent, salaries, and insurance premiums, their amounts do not fluctuate with the levels of output or sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.