Paul, a Salesman at an Apparel Store, Did Not Close

question 59

Multiple Choice

Paul, a salesman at an apparel store, did not close as many sales as was expected. Hence, his supervisor withheld his monthly incentive. In the given scenario, Paul's supervisor possesses:

• A) referent power.
• B) expert power.
• C) coercive power.
• D) legitimate power.

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Definitions:

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.

Participation in Earnings

A method where stakeholders, usually employees or managers, receive a share of the company's profits, typically based on predetermined criteria.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable directly or indirectly to the parent company, reflecting minority shareholders' equity in the subsidiary's net assets.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership equity spread among shareholders.