Before It Was Publicly Known That IBM Was Going to Take

question 58

Multiple Choice

Before it was publicly known that IBM was going to take over Lotus Development,an IBM secretary told her husband,who told two co-workers,who told friends,relatives,business associates,and even a pizza delivery man.A total of 25 people received the information and traded on this tip to make a profit.These people were:

• A)really smart.
• B)insider trading.
• C)stealing from IBM.
• D)acting fairly.

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Definitions:

Norm of Reciprocity

A social norm that expects individuals to help those who have helped them, fostering cooperative and mutually beneficial relationships.

Power Distance Orientation

A cultural dimension that describes the extent to which members of a society or organization accept and expect power to be distributed unequally.

Leadership

Involves influencing and guiding individuals or groups towards the achievement of goals.

Leader-member Exchange

Leader-member exchange is a theory describing the dyadic relationship between leaders and their followers, focusing on how these relationships influence organizational outcomes.