You Are a Management Consultant

question 2

Multiple Choice

You are a management consultant. During a training session you are conducting, a manager from XYZ Energy Corporation asks you to summarize the best research evidence on the impact of the five bases of power on job performance, job satisfaction, and turnover. Which of these would be a correct response?

• A) Reward power had stronger positive impact than referent power.
• B) Legitimate power had stronger positive impact than expert power.
• C) Referent power had a weaker positive impact than legitimate power.
• D) Expert and referent power had a generally positive impact.
• E) Coercive power had a positive impact on performance and a negative impact on satisfaction.

---

Definitions:

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to spread the cost of an asset over its useful life.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or C$.

Absolute Purchasing Power Parity

The theory that, in the absence of transaction costs and other barriers, identical goods in different countries should have the same price when expressed in a common currency.

Transaction Costs

The expenses incurred when buying or selling goods and services, which may include commissions, fees, and the bid-ask spread.