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What is motivation? Describe the five general categories of activities based on which managers can motivate people.
Variable Costs
Expenses that change in proportion to the production output or sales.
Operating Leverage
The degree to which a company can increase its profits by increasing sales, highlighting the proportion of fixed costs in a company’s cost structure.
Forecasting Risk
The uncertainty in predicting future values due to unforeseen events or inaccuracies in analysis, affecting strategic and operational decisions.
Option To Wait
This is an investment strategy where investors hold off on making an investment decision to gather more information or wait for a more favorable market condition.
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