What Is Economic Freedom and Why Is It Important for Economic

question 43

Essay

What is economic freedom and why is it important for economic growth?

Identify and develop political skills for organizational influence.

Recognize the importance and strategies of impression management in the workplace.

Analyze the role of politicking in achieving organizational and individual goals.

Examine the concept of referent power and its significance in informal power structures.

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Definitions:

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.

Dividends

Payments made to shareholders out of a company's profits.

Steady Source

A consistent and reliable means of obtaining something, such as income or information.

Clientele Argument

A theory suggesting that companies attract investors whose preferences align with the company's policies regarding dividends, financing, and investment.