Individuals Follow Orders Because It Is the Appropriate Thing to Do

question 91

Multiple Choice

Individuals follow orders because it is the appropriate thing to do and because they want to act in the way the leader would act. This kind of power is an example of:

• A) reciprocal power
• B) legitimate power
• C) referent power
• D) reward power
• E) expert power

Understand different types of uncertainties in organizational contexts and their impacts.

Identify and describe various organizational responses to uncertain environments.

Comprehend the purpose and elements of effective planning in organizations.

Recognize the importance and components of a mission statement.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health of a company's core activities.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

General Rule

A basic or principal rule that provides guidance or policy in a given area or operation.

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company.