Suppose Your Department Is Faced with a Severe Budget Shortfall

question 116

Multiple Choice

Suppose your department is faced with a severe budget shortfall. One manager steps up and initiates changes that save the department a great deal of money. Which of the following would likely happen based on attributions made about leadership?

• A)You will begin to regard that manager as a leader.
• B)The manager will subsequently have a greater capacity to lead the department.
• C)The ethics of the department would decline.
• D)The manager loses her job because of violating the company procedures.
• E)Both responses b and c above are correct.

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Definitions:

Accounting Profits

The profit or loss recorded on a company's financial statements, calculated as revenues minus expenses and taxes.

Economic Profits

The difference between total revenue and total costs, considering both explicit and implicit costs.

Salary Offer

The amount of pay or compensation that an employer is willing to give an employee for their work.

Capital Investment

The funds spent by a business to purchase, upgrade, or maintain physical assets such as property, industrial buildings, or equipment.