Scenario A

question 11

Multiple Choice

Scenario A. Use the information given below to answer the questions that follow.
As a consultant to a local manufacturing facility, you are conducting a leadership training seminar. You encounter several managers who believe that they can describe the key to their success: Sarah says that she is successful because when she tells her employees to do something, they do it because she's the boss. Martha explains that she can get her employees to do what she wants because they like her and they want their manager to appreciate them. Carl feels that his employees are cooperative because they realize that he knows more about their jobs than anybody else in the organization. Elizabeth says that if employees fail to be productive, she takes away their leave privileges and that corrects the problem.
-In the context of the above scenario, Sarah has _____ power.

• A) referent
• B) expert
• C) legitimate
• D) reward
• E) coercive

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Definitions:

Semiannually

Occurring or payable twice each year.

Present Value Table

A table used to determine the present value of a cash flow or series of cash flows to be received in the future, based on a certain discount rate.

Loan Agreement

A legally binding contract between a borrower and a lender, detailing the terms and conditions of a loan.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount, or the income earned from lending funds.