Position Power Is Not a Characteristic of the Leader but of the Situation

question 22

True/False

Position power is not a characteristic of the leader but of the situation the leader finds himself or herself in.

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Definitions:

Additional Funds Needed (AFN)

Those funds required from external sources to increase the firm’s assets to support a sales increase. A sales increase will normally require an increase in assets. However, some of this increase is usually offset by a spontaneous increase in liabilities as well as by earnings retained in the firm. Those funds that are required but not generated internally must be obtained from external sources.

Pro Forma Financial Statements

Financial documents that project a company's future financial performance based on certain assumptions.

Capital Intensity Ratios

Ratios that measure the extent to which a company is deploying its assets in its business operations.

Inventories

Stock of goods or materials held by a company, intended for sale or used in production processes.