If LMX Is Predicated on the Belief That the Relationship

question 1

Multiple Choice

If LMX is predicated on the belief that the relationship between a leader and followers is not a simple, stable one, how does it consider the interaction between the leader and individual followers?

• A) It is one composed of multiple interactions between the leader and individual followers and places the relationship between an individual follower and the leader as of critical importance.
• B) It is one composed of single interactions between individual followers and places the relationship between an individual follower and the leader as of little importance
• C) It is one composed of no interaction between the leader and individual followers and places the relationship between an individual follower and others as of equal importance
• D) It is one composed of multiple interactions between the individual followers and places the relationship between an individual follower and the leader as of no importance

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Definitions:

Discount Rate

The rate of interest utilized in the process of discounted cash flow analysis for assessing the present worth of future cash flows.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a proposed project through its net present value.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Discount Rate

In the realm of discounted cash flow analysis, this is the interest rate used for estimating the present value of future financial inflows.