Kimberly Has Been Contacted Eight Times in the Last Week

question 53

Multiple Choice

Kimberly has been contacted eight times in the last week by a pushy telemarketer. She made the mistake of showing some interest in the product being sold and has not had much luck in getting rid of the caller. Which of the following forms of power is being exercised by the telemarketer?

• A) expert power
• B) referent power
• C) reward power
• D) coercive power

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the company.

Investment Elimination Entry

An accounting entry made in the process of consolidating financial statements to remove the effects of intercompany investments and avoid double counting.

Subsidiary Asset

An asset owned by a subsidiary company, which itself is controlled by a parent company through ownership of more than half of its voting stock.

Accumulated Impairment Loss

The total amount of impairment loss that has been recognized on assets over their lifetime, reducing their book value.