Which of the Following Statements Is True of Coercive Power

question 46

Multiple Choice

Which of the following statements is true of coercive power of leaders?

• A)It refers to the power that sterns from the authority to bestow rewards on other people.
• B)It is the negative side oflegitirnate and reward power.
• C)It refers to authority resulting from a leader's special knowledge or skill.
• D)It depends on a leader's personal characteristics rather than on a formal title.

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Definitions:

Price Competition

The process where businesses attempt to attract customers by undercutting each other's prices, commonly seen in markets with many sellers and homogeneous products.

Oligopolistic Producers

These are companies within an industry where a small number of firms hold a large market share, leading to limited competition and potentially collaborative market behaviors.

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, leading to competition based on product differentiation.

Normal Profits

The minimum profit necessary for a company to remain competitive in the market, equivalent to the opportunity cost of capital.