According to LPC Theory, a Situation That Has High Position

question 18

Multiple Choice

According to LPC theory, a situation that has high position power, high task structure and poor leader-member relations is

• A) maximally favourable.
• B) very favourable.
• C) moderately favourable.
• D) very unfavourable.
• E) maximally unfavourable.

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Definitions:

Push Down Accounting

An accounting method in which the financial statements of a subsidiary are adjusted to reflect the parent company's basis of assets, liabilities, and any goodwill created in the acquisition.

Negative Acquisition Differential

occurs when the sum of the fair values of identifiable net assets exceeds the cost of acquisition, leading to an immediate gain in the acquirer's financial statement.

Negative Goodwill

A financial situation where the purchase price of a company is less than the fair market value of its assets minus liabilities.

Acquisition Method

An accounting method used to account for business combinations, emphasizing the fair value of the acquired entity.