What Is a Result of Recent Research on LMX Theory

question 25

Multiple Choice

What is a result of recent research on LMX theory?

• A) No difference existed between in-group or out-group members on performance ratings when the communication between the supervisor and in/out-group members increased.
• B) Increased communication between the supervisor and out-group members leads to lower performance ratings.
• C) Increased communication between the supervisor and in-group members tends to lead to lower performance ratings.
• D) Decreased communication between the supervisor and out-group members tends to lead to higher performance ratings.

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Definitions:

Investment Center

A segment or area of a business responsible for its own revenues, expenses, and investment in assets.

Controllable Margin

The portion of profit or income that can be directly influenced by managing decisions, excluding fixed costs and other unchangeable expenses.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, such as equipment, inventory, and property.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit earned on the investment by the cost of the investment.