What Is Important for Leaders to Understand Regarding the Use

question 22

Multiple Choice

What is important for leaders to understand regarding the use of punishment?

• A) As a form of punishment, public reprimands are more effective than private reprimands.
• B) When using an oral reprimand regarding an employee's behavior, leaders should refrain from focusing on specific actions.
• C) A leader needs to use either punishment or positive reinforcement, but not both.
• D) When using punishment, a leader must specify an alternative behavior to the employee.

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Definitions:

Residual Income

Residual income is the profit earned after subtracting all required costs of capital from the operating profit.

Minimum Required Rate

The least acceptable rate of return on an investment, often used in capital budgeting to assess potential projects.

Operating Assets

Assets used by a business in its daily operations to generate revenue, excluding investments and non-essential properties.

Contribution Margin Ratio

A financial metric that shows the portion of sales revenue that exceeds variable costs, indicating how sales affect profitability.