Managers with a Strong Need for Security Are Most Likely

question 12

Multiple Choice

Managers with a strong need for security are most likely to favour

• A) stable performance
• B) leading the market
• C) aggressive growth targets
• D) a high debt/equity ratio

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Definitions:

Control Costs

Efforts and measures implemented to monitor and manage expenses to ensure they align with budgetary constraints and financial goals.

Cost Center Evaluation

The process of analyzing the performance and efficiency of a department or unit within an organization that does not directly generate revenue.

Controllable Margin

The amount of profit or contribution margin that a manager can directly influence by controlling costs and generating revenues.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.