Which of the Following Statements About Countervailing Power in Organizational

question 130

Multiple Choice

Which of the following statements about countervailing power in organizational relationships is TRUE?

• A)Countervailing power is like an umbrella; it prevents anyone else from having any power over you.
• B)Countervailing power is used by the stronger party to prevent the weaker party from leaving the relationship.
• C)Countervailing power is the weaker party's power to maintain the stronger party's continued participation in the relationship.
• D)Countervailing power is one of the ways that people have power by coping with uncertainty.
• E)Countervailing power is a personality characteristic of people who crave power.

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Definitions:

Dollar Votes

The “votes” that consumers cast for the production of preferred products when they purchase those products rather than the alternatives that were also available.

Product Market

A marketplace where final goods or services are bought and sold by consumers, businesses, and the government.

Laissez-Faire Capitalism

A hypothetical economic system in which the government’s economic role is limited to protecting private property and establishing a legal environment appropriate to the operation of markets in which only mutually agreeable transactions take place between buyers and sellers; sometimes referred to as “pure capitalism.”

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.