Answer the following statements true (T) or false (F)
1. The margin of safety can be used to evaluate a company's plans for the future.
2. If variable costs increase, and all other factors remain the same, the margin of safety will become
smaller.
3. If variable costs decrease, and all other factors remain the same, the margin of safety will become
larger.
4. If fixed costs increase, and all other factors remain the same, the margin of safety will become larger.
5. The degree of operating leverage is the ratio that measures the effects that variable costs have on operating income when sales volume changes.
1, True
2. True
3. True
4. False
5. False
The degree of operating leverage is the ratio that measures the effects that fixed costs have
on operating income when sales volume changes.
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What will be an ideal response?
During the sales presentation, the salesperson should provide information that encourages the prospect to develop positive beliefs about the product.
Answer the following statement true (T) or false (F)
Traditional organization theory uses which of the following to motivate workers?
A) bonuses B) self-esteem C) nature of the work itself D) increased responsibility E) job satisfaction
What type of business entity is a business organization like a general partnership in thatit consists of two or more people who are co-owners of a business for profit but not all of the co-owners of thebusiness are involved in the management and
operation of the business? a. Limited partnership b. Business corporation c. Limited liability partnership d. Limited liability company