When Employees Are Empowered to "Think Outside the Box" to Find

question 469

Multiple Choice

When employees are empowered to "think outside the box" to find new solutions to problems within the company, the leader of their company is utilizing which of the following transformational techniques?

• A) idealized influence
• B) inspirational motivation
• C) intellectual stimulation
• D) individualized consideration

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Definitions:

Coase Theorem

Under certain conditions, when externalities are present, private parties can arrive at the efficient solution without government involvement.

External Cost

External cost is a cost incurred by a third party who did not agree to the action that caused the cost, often seen in pollution or other forms of environmental impact.

MC

An abbreviation commonly used for "Marginal Cost," which refers to the additional cost incurred by producing one more unit of a good or service.

Liability Rule

A legal principle that allocates the economic burden of damages to the party responsible for causing harm.