A Key Assumption Underlying the Use of a Participative Leadership

question 2

Multiple Choice

A key assumption underlying the use of a participative leadership style in anticipatory strategic change situations is

• A) an appropriate change agenda will emerge from the process
• B) managerial competence in using the style
• C) a strong sense of urgency
• D) weak competitors

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Definitions:

Effective Tax Rate

The average percentage of one's total income paid in taxes, factoring in all deductions and credits.

Capital Structure

The mix of a company's debt, equity, and other sources of financing used to fund its operations and growth.

Cost of Capital

The minimum return that a business needs to generate on its projects to preserve its marketplace value and draw in financing.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting, legal, and registration fees.