The Ability of an Investing Company to Affect the Operating

question 22

Multiple Choice

The ability of an investing company to affect the operating and financial policies of another company,even though the investor holds less than 50 percent of the voting stock,is known as

• A)significant influence.
• B)control.
• C)minority interest.
• D)noninfluential control.

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Definitions:

Transformational Leadership

The active promotion of values to provide a shared vision of the organization. Leader and members are bound together in a higher moral purpose. The leader raises the aspirations of followers such that they think and act beyond their own self-interests.

Lewin's Styles

Kurt Lewin's leadership styles framework, which identifies three main styles of leadership: autocratic, democratic, and laissez-faire.

Productivity

The efficiency at which goods or services are produced, typically measured by the output per unit of input.

Least Preferred Coworker

A measure used in Fiedler's contingency model to identify an individual's leadership style by assessing their feelings towards the least liked coworker.