Statement I

question 93

Multiple Choice

Statement I.The circular flow model oversimplifies the exchanges in our economy.
Statement II.Most of the money received by households in the form of wages,rent,interest,and profits flows back to business firms in the form of consumer expenditures.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Coercive Power

A form of power based on the ability to deliver punishments or impose penalties.

Legitimate Power

The authority that a person or position holds within an organization, which is accepted and recognized by others as right and proper.

Organizational Position

The rank or status of an individual within a company's hierarchy, defining their roles, responsibilities, and authority.

Control

The process of directing and regulating the behavior or course of events in a business to achieve management's objectives.