Some Elites Depend on Legitimacy Conferred by Rules That Are

question 55

Multiple Choice

Some elites depend on legitimacy conferred by rules that are agreed on by both leaders and followers. Weber refers to this type of legitimacy as

• A) rational-legal authority.
• B) institutional authority.
• C) imaginary authority.
• D) charismatic authority.

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Definitions:

Project's Cash Flows

The inflows and outflows of cash associated with a specific project, considered in its financial analysis.

Reinvested

Pertains to the act of putting earnings or profits back into the business or project instead of paying them out as dividends.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value of all cash flows from a particular project equal to zero.