Greiner's Model of Growth Suggests All of the Following Except

question 79

Multiple Choice

Greiner's model of growth suggests all of the following except:

• A) it is possible to regress to an earlier stage of growth.
• B) an organization should develop an internal labor market to resolve the crisis of red tape.
• C) an organization will enter decline if it fails to manage a crisis.
• D) an organization passes through five growth stages during the course of organizational evolution.

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Definitions:

Break-Even Point

The point at which total costs equal total revenue, meaning the business does not make a profit or loss.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales, indicating the proportion of fixed to variable costs.

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Fixed Expenses

Costs that remain constant over a specified period regardless of changes in the level of activity or volume of production.