Francis, a Senior Leader in a Company, Has Just Been

question 62

Multiple Choice

Francis, a senior leader in a company, has just been given some extra budget as they performed well last year. Francis intends on distributing it to employees who went 'above and beyond' during the year. Which type of power would this situation best represent?

• A) Legitimate Power
• B) Coercive Power
• C) Referent Power
• D) Reward Power

---

Definitions:

Break-Even Analysis

A financial calculation that determines the point at which revenue received equals the costs associated with receiving the revenue, thereby resulting in neither a profit nor a loss.

Contribution Margin

Contribution margin is a financial metric that represents the difference between a company's sales revenue and variable costs, used to assess the profitability of individual products or services.

Profit Goal

A financial objective set by businesses that aims to achieve a specific amount of profit over a certain period of time.

Management By Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.