One of the Follower Characteristics in Path-Goal Theory Is Perception

question 30

Essay

One of the follower characteristics in path-goal theory is perception of ability. As perception of ability goes up, directive leadership should go down. Why is this? And what is the effect on the follower if directive leadership continues to be used?

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Definitions:

Conversion Value

The value of a convertible security if it were converted into a different asset, typically shares of the issuing company's stock.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities.

Call Option

is a financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Strike Price

The set price at which the holder of an options contract can buy or sell the underlying asset.