During the Second Stage of the Process for Developing Positive

question 57

Multiple Choice

During the second stage of the process for developing positive LMX relations:

• A) exchange based on self-interest is transformed into mutual commitment to the mission and objectives of the work unit.
• B) impressions management by the follower plays a critical role in influencing how the leader perceives him or her.
• C) mutual trust, loyalty, and respect begin to develop between leader and follower.
• D) the roles between leader and follower have reached maturity.

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Definitions:

Coincidence of Wants

A situation in barter economies where two parties each possess goods or services that the other desires, enabling a direct exchange without the need for a common medium of trade.

Circular Flow Diagram

The circular flow diagram is an economic model that shows how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.

Revenue

The income that an organization receives from its normal business activities, usually from the sale of goods and services.

Insurance

A contractual arrangement providing financial protection against losses or damages from specific risks, in exchange for premium payments.