The Ability of a Manager to Give Outcomes to or Withhold

question 9

Multiple Choice

The ability of a manager to give outcomes to or withhold outcomes from subordinates is known as:

• A) legitimate power.
• B) reward power.
• C) expert power.
• D) referent power.
• E) coercive power.

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Definitions:

Callable Bond

A callable bond is a type of bond that gives the issuer the right to repay the bond before its maturity date, at a predetermined call price.

Leveraged Firm

A company that uses borrowed funds or debt to finance its operations or acquisitions, aiming to increase potential returns to equity owners.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values deviate from the mean.

Zero-coupon Bonds

Bonds that do not pay periodic interest payments and are issued at a deep discount to their face value, with the face value repaid at maturity.