In the Matter of Kmart Corp

question 15

Multiple Choice

In the Matter of Kmart Corp., where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that the decision of the bankruptcy judge was:

• A) within the scope of judgment allowed in an effort to keep a business functioning
• B) proper because the critical vendors were the secured creditors with preference
• C) proper so long as the proceeds of future sales were dedicated to non-critical vendors
• D) improper because it violated the payment schedule required in the Bankruptcy Code
• E) none of the other choices

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Definitions:

Followership

A leadership approach in which leaders don’t exist without followers; most people are followers most of the time. Exemplary followers are highly committed to the organization, self-managing, and willing to provide honest, independent, and constructive critique to leaders.

Transformational Leaders

Leaders who inspire followers to exceed their own self-interests, to achieve extraordinary outcomes by transforming their beliefs and values.

Visionary Leaders

Leaders who have the ability to see future possibilities and inspire others to work towards these new, innovative directions.

Leadership Assumptions

Preconceived notions or beliefs about what leadership entails, including traits, behaviors, and effects on an organization's culture and performance.