What Do We Call Power That Is Viewed as Legitimate

question 28

Multiple Choice

What do we call power that is viewed as legitimate and justified, and that is institutionalized in politics, religion, and law?

• A) force
• B) control
• C) influence
• D) authority

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Definitions:

Clientele Effect

A theory suggesting that changes in dividend policy may attract different groups of investors based on their preferences for dividend payouts versus capital gains.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, typically expressed as a percentage.

Price/earnings Ratio

A valuation metric for companies, calculated as the market value per share divided by the earnings per share.

Excess Cash

Refers to the amount of cash held by a company that exceeds the normal operational needs, often indicating a potential for investment, distribution to shareholders, or acquisition.