Which of the Following Statements About Countervailing Power in Organizational

question 131

Multiple Choice

Which of the following statements about countervailing power in organizational relationships is TRUE?

• A)Countervailing power is like an umbrella;it prevents anyone else from having any power over you.
• B)Countervailing power is used by the stronger party to prevent the weaker party from leaving the relationship.
• C)Countervailing power is the weaker party's power to maintain the stronger party's continued participation in the relationship.
• D)Countervailing power is one of the ways that people have power by coping with uncertainty.
• E)Countervailing power is a personality characteristic of people who crave for power.

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Definitions:

Debt Issue

The process by which a government, corporation, or other entity raises money through the sale of bonds, notes, or other forms of debt.

Leverage

The practice of leveraging borrowed money to enhance the expected returns on an investment.

Repurchase Shares

A transaction in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.