Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A)The head of an organization is always a true leader.
• B)Legitimate authority and leadership are similar.
• C)Holding a position and being a leader are synonymous.
• D)Effective leaders intuitively realize they need more than legitimate power to be successful.

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Definitions:

Sales

The total revenue a company generates from selling goods or services.

Solvency

The ability of a firm to pay its debts as they come due.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss of value, indicating the ease with which a company can meet its short-term financial obligations.

Current Position Analysis

This is an evaluation of an organization's current financial status and performance, particularly focusing on its liquidity, solvency, and overall financial health.