The Small Firm Effect Is the Theory That

question 46

Multiple Choice

The Small Firm Effect is the theory that:

• A)firms with small market capitalization outperform the market.
• B)small firms have greater market capitalization.
• C)transaction costs associated with dealing in larger capitalization firms might severely cut into profit potential.
• D)More than one of the above

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Definitions:

Intellectual Stimulation

The process of encouraging creative and critical thinking, often used in leadership to foster innovation and problem-solving.

Contingent Reward

A leadership approach that establishes a clear agreement between leaders and followers regarding the expectations and rewards for meeting those expectations.

Transformational Leaders

Leaders who inspire and motivate followers to exceed their own interests for the good of the organization and foster significant changes.

Role Models

Individuals admired for their achievements and qualities, serving as examples for others to emulate in their personal or professional lives.