Which of the Following Situations Can Be Seen as an Application

question 74

Multiple Choice

Which of the following situations can be seen as an application of leader-member exchange (LMX) theory?

• A) A manager continually attempts to accomplish operational efficiency by rewarding only the better performers.
• B) Sara, operations manager of a firm, successfully persuades employees to do well by offering rewards in exchange of good performance.
• C) Ronald, the manager of a pharmaceutical company, performs a part of the operational tasks all by himself
• D) Arnold, the factory manager of a manufacturer, continually attempts to maintain a good relationship with the factory workers.

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Definitions:

Fixed Amount

A fixed amount refers to a specific quantity or sum of money that does not change over time, often used in financial contexts like investments, payments, or fees.

Specified Event

An occurrence or situation outlined within a contract that triggers certain actions or conditions, often used in insurance and derivatives contracts.

Striking Price

The set price at which an option's holder is allowed to purchase or sell the asset underlying the option.

Stock Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified quantity of a stock at a set price within a certain time period.