"I'm not sure that I'm going to like our new boss," said Terry to his co-worker, Frieda. "I've noticed that when a decision needs to be made - Boom! - she makes it, announces it, and moves on without consulting any of us." Terry's new boss is using a(n) ________ leadership approach to decision making.
A. autocratic
B. situational
C. laissez-faire
D. participative
E. democratic
Answer: A
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In a manufacturing company, which one of the following audit procedures would give the least assurance about the valuation of inventory at the audit date?
A. Reviewing direct labor rates. B. Testing the computation of standard overhead rates. C. Examining paid vendors' invoices. D. Obtaining confirmation of inventories pledged under loan agreements.
Business segmentation based on purchasing approaches may divide the market by technology, user and nonuser status, and general purchasing policies
Indicate whether the statement is true or false
An auditor adjusts the audit plan by introducing unexpected audit procedures in response to what the auditor believes management may be doing to conceal a fraud based on management's strategic reasoning. Which order of reasoning is occurring here?
a. Low-order reasoning b. Zero-order reasoning c. Higher-order reasoning d. First-order reasoning
Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized
Indicate whether the statement is true or false