One Reason for the Importance of the Leader Using Influence

question 10

Multiple Choice

One reason for the importance of the leader using influence tactics is that

• A)formal authority has almost disappeared.
• B)many workers doubt that their leader will be around for long.
• C)many workers assume that their leader will be around for a long time.
• D)the vast majority of employees worry about job security.

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Definitions:

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.

EBIT

Earnings Before Interest and Taxes represent a company's profit before deducting expenses from interest and income taxes.