Based on the Path Goal Theory, House (1971) Believes That

question 43

Multiple Choice

Based on the Path Goal theory, House (1971) believes that a leader's behavior will be accepted by subordinates only to the extent to which the behavior:

• A) is forced upon the followers
• B) will increase overall productivity
• C) helps subordinates achieve their goals
• D) none of these are important factors

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Definitions:

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of payments, based on a specific rate of return.

Discount Factor

A multiplicative factor used to calculate the present value of future cash flows or income streams, reflecting the time value of money.

Time Value

The viewpoint that money on hand today is considered more valuable than the same amount received in the future, due to potential earnings.

Money

A medium of exchange that facilitates trade, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.