The Most Important Symbolic Actions Are Those That Top Executives

question 54

Multiple Choice

The most important symbolic actions are those that top executives take to

• A)lead by example.
• B)lead by influence.
• C)follow by example.
• D)follow the majority.
• E)lead to the contrary.

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Definitions:

Financial Leverage

The use of debt to increase the potential return of an investment.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree to which fixed costs affect profitability.

Sales Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

DOL

Stands for Degree of Operating Leverage, which measures a company’s sensitivity of operating income to its sales.