The Effectiveness of Formal Authority Is Derived from the Willingness

question 6

True/False

The effectiveness of formal authority is derived from the willingness of followers to acknowledge the legitimacy of the organizational structure and the system of rules and regulations that empowers its leaders.

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Definitions:

Chapter 11

A provision in the U.S. Bankruptcy Code that allows businesses and individuals to reorganize their debts in order to pay back creditors over time.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party under the terms of a trust agreement.

Chapter 7

A provision of the U.S. Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.

Debtors

Individuals or entities that owe money to another party, typically as a result of receiving a loan or credit.