A Key Assumption Underlying the Use of a Participative Leadership

question 2

Multiple Choice

A key assumption underlying the use of a participative leadership style in anticipatory strategic change situations is

• A) an appropriate change agenda will emerge from the process
• B) managerial competence in using the style
• C) a strong sense of urgency
• D) weak competitors

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Definitions:

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Operating Leverage Factor

A measure indicating how a company's fixed costs relate to its variable costs, impacting profitability as sales levels change.

Contribution Margin

The contribution margin is the amount by which the sales revenue of a product or service exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Selling Price

The amount of money customers pay for a product or service.