Power and Compliance Based on a Sense of Duty Often

question 33

Multiple Choice

Power and compliance based on a sense of duty often found in traditional cultures is called

• A)referent power.
• B)legitimate power.
• C)informational power.
• D)coercive power.

---

Definitions:

Unsystematic Risk

The risk that is unique to a specific company or industry.

Systematic Risk

The danger that affects the whole market or a specific market segment, referred to as market risk, is unremovable by diversifying investments.

Business-Specific Risk

Refers to the uncertainties faced by a company due to the industry it operates in or the nature of its business operations.

Security Market Line

A representation in financial markets that shows the relationship between risk (as measured by beta) and the expected return of a portfolio or individual security.