Many Managers and Employees Are Reluctant to Accept Empowerment, but They

question 93

Multiple Choice

Many managers and employees are reluctant to accept empowerment, but they are even more reluctant to offer empowerment. If a rationale offered by management is "I'm willing to empower my people, but they just won't accept the responsibility," what is the inhibitor?

• A) Attitudes about subordinates
• B) Personal insecurities
• C) Need for control
• D) Incompetent empowerment

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Definitions:

Cost of Retained Earnings

The opportunity cost for a company of using its retained earnings as a source of finance for new investments, often estimated using the cost of equity.

Growth Rate

The rate at which a company's sales, earnings, dividends, or assets increase over a specified period.

Recent Dividend

The latest distribution of a portion of a company's earnings to its shareholders.

Cost of Capital

The imperative return rate a firm has to achieve on investment initiatives to retain its market worth and draw investment.