Which of the Following Statements Describes a Scenario When Management

question 59

Multiple Choice

Which of the following statements describes a scenario when management should consider dropping a business division?

• A)The division has been reporting an operating loss consistently.
• B)The division's avoidable fixed costs are less than its contribution margin.
• C)The division's avoidable fixed costs are greater than its contribution margin.
• D)The division's unavoidable fixed costs are greater than its operating loss.

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Definitions:

Transactional Leader

A management style focused on routine, organization, and performance, rewarding compliance and correcting deviations.

Transformational Leader

A leader who inspires followers to exceed their own interests for the good of the group or organization, creating profound and positive changes.

Self-fulfillment

The achievement of personal goals, aspirations, or desires, leading to a sense of satisfaction and contentment.

Charismatic Use

The application and utilization of personal appeal and influence to inspire and motivate others.