When a Top Manager Decides to Hire an Individual Over

question 2

Multiple Choice

When a top manager decides to hire an individual over the objections of her staff, she is exercising which kind of power?

• A)referent
• B)expert
• C)coercive
• D)legitimate

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Definitions:

IRR Method

The Internal Rate of Return method, a capital budgeting technique that calculates the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Nonconventional Flows

Atypical or irregular cash flows in an investment, complicating the assessment of an investment's value or project's profitability.

Profitability Index

A calculation that measures the relative profitability of an investment, by dividing the present value of future cash flows by the initial investment cost.

Share Price

The current price at which a single share of a company's stock can be bought or sold in the financial markets.