In His Five Principles for Creating a Learning Organization, Peter

question 97

Multiple Choice

In his five principles for creating a learning organization, Peter Senge says managers should empower their employees and allow them to experiment, create, and explore what they want.Peter refers to this as

• A)complex mental model.
• B)individual creativity.
• C)illusion of control.
• D)personal mastery.
• E)building a shared vision.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.