Path-Goal Theory Identifies Four Types of Behaviors in Which Leaders

question 45

Essay

Path-goal theory identifies four types of behaviors in which leaders can engage in order to motivate their subordinates. Discuss these types of behaviors and give one specific management example of how a manager could act according to each of these.

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Definitions:

Solvency

The ability of a company to meet its long-term financial obligations and continue its operations indefinitely.

Fair Value

The price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.

Treasury Stock

Stock that was issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Shareholders' Equity

The residual interest in the assets of a company after deducting all its liabilities, representing what the shareholders own outright.