In Exchange for a Share of ZYX's Profits If It

question 26

Multiple Choice

In exchange for a share of ZYX's profits if it succeeds, Firm ABC provides development funds to newly formed ZYX, which is developing an innovative product. ABC funds are called , while ZYX is known as a .

• A) venture capital; start-up
• B) retained earnings; entrepreneurial firm
• C) mutual funds; start-up
• D) transfer payments; entrepreneurial firm

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Definitions:

Toxic Triangle

A framework that describes the confluence of destructive leaders, susceptible followers, and conducive environments that foster toxic leadership.

Destructive Leaders

Leaders who have a deleterious effect on their followers, organizations, or both, usually through toxic, unethical, or incompetent practices.

Destructive Leadership

A leadership approach characterized by the systematic and repeated behavior by a leader that violates the legitimate interest of the organization by undermining and/or sabotaging the organization’s goals, tasks, resources, and effectiveness and/or the motivation, well-being or job satisfaction of his/her subordinates.

Unstable

Lacking stability; prone to sudden change or unpredictability in terms of physical, emotional, or situational conditions.