Which of the Following Statements Is True with Regard to the Path-Goal

question 98

Multiple Choice

Which of the following statements is true with regard to the path-goal theory of leadership?

• A) The theory considers leadership to be a set of attributes ascribed to leaders by followers.
• B) The theory proposes only a passive and supportive role for leaders.
• C) The theory considers removing obstacles to be a component of effective leadership.
• D) The theory proposes that leaders must work closely with followers throughout.
• E) The path-goal theory represents a laissez-faire approach to leadership.

---

Definitions:

Loanable Funds

The funds available for borrowing in the financial markets, involving the lending and borrowing between savers and borrowers, which determines the equilibrium interest rate.

Domestic Investment

The total amount of resources invested in the production of goods and services within a country’s borders.

Net Capital Outflow

The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners; it can be positive (net outflow) or negative (net inflow).