A Top Manager at ACME, Inc

question 204

Multiple Choice

A top manager at ACME, Inc. makes the following statement: "We endorse an inclusive definition of leadership. We believe that leadership is the ability to influence others to help the organization achieve its goals and that any person in our organization can be a leader, even entry-level personnel. Because of this view, we have built a culture in which every employee has an equal opportunity to lead." How is the manager's reasoning vulnerable to criticism?

• A) It fails to account for the possibility that people who lack organizational authority can still be leaders.
• B) It fails to demonstrate that ACME's definition of leadership is the most popular definition.
• C) It uses a variation of a commonly used definition of leadership.
• D) It does not demonstrate that ACME's goals were well-chosen.
• E) It ignores the effect that managerial authority has on one's ability to influence others.

Compute the impact of changes to working capital on the financials of a project.

Explain the concept of opportunity cost in the context of capital budgeting decisions.

Understand how terminal values and growth assumptions influence project evaluation.

Identify sunk costs and their irrelevance to future financial decisions.

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Definitions:

Duties

Obligations or responsibilities imposed on individuals or entities by law, contract, or morally expected roles.

Original Principal

The initial amount of money borrowed or invested, before the addition of interest or profits.

Principal's Instructions

Guidelines or orders given by a principal to an agent detailing how to perform specific tasks or duties.

Agent's Authority

The scope of power given to an agent to act on behalf of a principal in legal or business matters.