In the Following Scenario, What Kind of Power Does Barney

question 29

Multiple Choice

In the following scenario, what kind of power does Barney have? Jay is the supervisor in a work group that consists of Belle, Bonnie, Bob, and Barney. Jay was promoted from within the work group when the previous supervisor left. Belle is the person who understands the group's task the best. Bob is very good at finding out what's going on around the organization. Bonnie manages to get different concessions from management for the group, such as extra time off and tickets to sports events. Barney is the slacker of the group, and everyone works to be as unlike him as possible.

• A) reward
• B) legitimate
• C) expertise
• D) reference
• E) information

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Definitions:

Cost of Equity

The rate of return that a company theoretically pays to its equity investors to compensate for the risk they undertake by investing in the company.

Cost of Equity

The return that investors expect for investing in a company's equity, considered the cost of equity capital.

Security Market Line

A representation in financial models that shows the relationship between the risk of an investment and its expected return.

Dividend Payout Ratio

A metric that measures the portion of a company's earnings paid out to shareholders as dividends.