Refer to the Scenario Below to Answer the Following Questions

question 1

Multiple Choice

Refer to the scenario below to answer the following questions.
Path-Goal Leadership (Scenario)
Harry knows that there are many different models of leadership. He wants to become more effective at his job, and also to assist his first-line managers in becoming more effective leaders. As he thinks about his first-line managers, he realizes that they each demonstrate a different leadership style. Jenna lets her employees know exactly what is expected of them and gives specific guidelines on how tasks are to be accomplished. Jack, on the other hand, always solicits information and suggestions from his employees before making a decision. Then there is Kate, who demands a lot from her employees. She sets challenging goals and expects all of her workers to try their best to achieve them. Finally, there is Frank, who is very friendly and shows constant concern for his employees and their welfare. Harry decides to use House's path-goal theory to further analyze his situation.
-Frank is a(n) __________ leader.

• A) directive
• B) supportive
• C) participative
• D) achievement-oriented
• E) cooperative

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Definitions:

Pre-Tax Cost of Debt

The rate of return that a company pays on its debt, before taking into account tax deductions.

Face Value

The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.

Return on Equity

A financial ratio indicating the profitability of a company relative to its shareholders' equity, calculated as net income divided by shareholders' equity.