Which of the Following Is True About the Effectiveness of Charismatic

question 57

Multiple Choice

Which of the following is true about the effectiveness of charismatic leadership?

• A) Research shows scant correlations between charismatic leadership and high performance.
• B) Charisma may not always be generalizable.
• C) Charisma appears most successful when the environment is stress-free.
• D) Charismatic leaders usually surface when the organization is stable and successful.
• E) Charismatic leadership qualities are best utilized in lower-level management jobs.

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Definitions:

Earnings Retention Ratio

The portion of a company's profits that is reinvested in the business rather than distributed to shareholders as dividends.

Market Capitalization Rate

The expected return on an investment in the market, derived from the collective appraisal of all investors' expectations of future market performance.

Present Value of Growth Opportunities

A valuation method that estimates the current worth of a company's future investment opportunities, considering the time value of money.

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.