A Transactional Leader Who Is Exhibiting Active Management by Exception

question 27

Multiple Choice

A transactional leader who is exhibiting active management by exception would be likely to

• A) enforce rules to prevent mistakes.
• B) wait to take action until mistakes are brought to their attention.
• C) use punishment in response to poor performance.
• D) allow subordinates to work without monitoring them.

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Definitions:

AMT

The Alternative Minimum Tax, a parallel tax system in the United States designed to ensure that individuals and corporations pay at least a minimum amount of taxes.

Small Corporations

Businesses typically characterized by a limited number of shareholders, assets, and revenues, and may qualify for certain tax benefits and simpler regulations.

Gross Receipts

The total amount received from all sources before any deductions or allowances, used as a measure of business size or taxation.

AMT Rate

The percentage at which the Alternative Minimum Tax is levied on income, designed to ensure that individuals pay a minimum amount of tax.