The Life Cycle Theory of Leadership Maintains That ________

question 35

Multiple Choice

The life cycle theory of leadership maintains that ________.

• A)a manager's leadership style should be independent of the follower's maturity levels and abilities
• B)the organization should match individuals with specific leadership situations
• C)a manager's leadership style will be effective only if it is appropriate for the maturity level of the followers
• D)leadership abilities of an individual increase as he gains experience and decrease after he reaches the maturity level
• E)as a manager gains experience he should shift toward a participative style of leadership

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Definitions:

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.

Systematic Risk

The danger that affects the whole market or a part of the market, which cannot be reduced by diversifying investments.

Unique Risk

A risk that affects a very small number of assets, also known as unsystematic risk, specific risk, or idiosyncratic risk, and can be largely eliminated by diversification.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.