If a Small Business Sets Up a Design Studio in Milan

question 84

Multiple Choice

If a small business sets up a design studio in Milan, Italy to create its line of specialty apparel, it is going global to

• A) expand its market.
• B) take advantage of special features of location.
• C) seek protection for its design patents.
• D) obtain critical raw materials.

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Definitions:

Legitimate Power

is a type of authority that is recognized and accepted by members of an organization, stemming from a formal position or role.

Formal Authority

The power or right to give orders, make decisions, and enforce obedience, typically within an organizational hierarchy.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Coercive Power

The ability of a person to compel or force someone else to act in a certain way through threats, punishment, or control measures.