According to the Path-Goal Theory, Employee Performance and Leadership Style

question 76

Multiple Choice

According to the path-goal theory, employee performance and leadership style are likely to be positively related when ________.

• A) the leader adopts a directive style when the tasks are clear and the employee has the experience and the ability to handle them
• B) the leader displays directive behavior at all times
• C) the leadership style compensates for shortcomings in either the employee or the work setting
• D) the leader adopts a directive style of leadership with followers who have an internal locus of control

---

Definitions:

Plowback Ratio

The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid, often reinvested in the business for growth.

P/E Ratio

The P/E Ratio (Price-to-Earnings Ratio) is a metric used to value a company by dividing its current share price by its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.