Which of the Following Statements Is True About Power in an Informal

question 21

Multiple Choice

Which of the following statements is true about power in an informal organization?

• A) It is delegated by managers.
• B) It strictly follows the official chain of command.
• C) It is likely to come from superiors in the formal hierarchy than from peers.
• D) It is usually more unstable than formal authority.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the value at which it will be redeemed at maturity or the value on which dividends or interest are calculated.

Coupon Rate

A bond's annual yield rate, represented as a percentage of its par value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often expressed in years.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in reference to bonds.