Which of the Following Statements Is True Regarding a Task

question 56

Multiple Choice

Which of the following statements is true regarding a task group?

• A) It is an informal group.
• B) A task group's boundaries are limited to its immediate hierarchical superior.
• C) All task groups are command groups.
• D) A task group can cross command relationships.
• E) All interest groups are task groups.

---

Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales revenue, indicating the proportion of fixed to variable costs.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, from its primary business activities.

Sales Decline

A decrease in the volume or value of sales over a specific period.

Margin of Safety

The extent by which sales can fall before reaching the break-even point.