Two Coworkers at Oracle Came Up with an Idea for Renting

question 64

Multiple Choice

Two coworkers at Oracle came up with an idea for renting software over the Internet. Oracle's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having which of the following?

• A) conceptual power
• B) legitimate power
• C) coercive power
• D) referent power

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Definitions:

Total Revenue

The aggregate income a company generates from its sales of products or delivery of services over a designated period.

Price Falls

A decrease in the market price of a good or service, which can affect consumer demand, producer supply, and overall market equilibrium.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.