For Employee Ownership of a Business to Work

question 38

Multiple Choice

For employee ownership of a business to work,

• A)the company must have a large market share.
• B)the company must treat its employees ethically.
• C)senior managers must be elected democratically.
• D)employees must believe they have role to play in leading the company.

Recognize the impact of changes in cost structures and sales on the break-even point and profitability.

Understand the concept of operating leverage and its effects on profitability.

Calculate the margin of safety and understand its importance in assessing business risk.

Differentiate between variable costing and absorption costing and their impact on profitability.

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Definitions:

Conflict Resolution

entails the process of resolving a dispute or conflict by meeting at least some of each party's needs and addressing their interests.

Task-related Characteristics

Features of a job or assignment that influence its execution, such as complexity, duration, and required skill level.

Communicating

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another.

Formal Roles

Official positions or functions designated by an organization, characterized by specific responsibilities and authority.