What Is the Basis for Establishing a High-Quality Exchange Relationship

question 43

Multiple Choice

What is the basis for establishing a high-quality exchange relationship?

• A) the subordinate's control over outcomes that are undesirable to peers
• B) the leader's control over outcomes that are desirable to the subordinate
• C) the subordinate's desire to eventually ascend to the leader's role
• D) the leader's experience as a subordinate in a similar role

---

Definitions:

Total Variable

Expenses that change in proportion to the activity of a business, such as costs of goods sold, which vary with the level of production or sales volume.

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.