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How can conflicts arise between the decision model and the performance evaluation model used to evaluate managers? Provide an example of this type of conflict.
Government Spending
The total amount of public sector expenditure on goods and services, including salaries, defense, and welfare programs.
Gross Domestic Product
The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Operating Leverage
The degree to which a firm relies on fixed costs in its operations, affecting its potential income variability.
Financial Leverage
The use of borrowed money to increase the potential return of an investment.
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