Leadership Styles
Define Autocratic Leadership
When managers keep control of information and decision making at the top of the organization. Often called authoritarian leadership
Define sale of assets
An established business selling unwanted items like machinery, old stock, land or buildings to fund other projects.
Sale of assets
Define Laissez-Faire Leadership
This leadership type occurs when leaders allow employees to make all of their own decisions. This type of leadership is done for two different reasons. One, the leader is not very skilled and allows workers to do what they want. Or, when the leader trusts employees and allows them complete freedom.
Within how long does the business have to pay the trade creditor back?
30-90 days
A new delivery company wants to expand its fleet of vehicles but doesn't have the money to buy trucks upfront. What source of finance should they use?
Leasing
At this international organization's annual planning retreat, decisions are made only after hours of open-floor discussions. While one figure facilitates the conversation, all members (including junior analysts and regional directors) vote equally on policy directions, often leading to slower, but more widely accepted, changes. What type of leadership style is this?
Democratic leadership.
What are the 3 types of internal sources of finance?
1. Personal Funds
2. Retained Profits
3. Sale of Assets
A startup founder is unable to pay for website development after being turned down by several banks. What source of finance is best?
Personal funds
What is paternalistic leadership NOT good for?
ONE ANSWER:
1. Low staff motivation if a loyal connection to the leader is not established
2. Increased dependency of employees on the leader, leading to more supervision required
3. Employee dissatisfaction if bad decisions are made
Define bank overdraft
When a lending institution allows a firm to withdraw more money than it currently has in its account. A pre-determined limit is often arranged, and costs are accrued if it is exceeded. More "wiggle room". Usually from a bank.
After several successful years, a company decides to invest in upgrading its technology. Instead of seeking external funds, what source of finance is the best?
In the final stages of constructing a national monument, the chief architect dismisses all proposed changes from the design team and orders immediate implementation of his original blueprints. Despite protests from engineers and artists about structural concerns and aesthetic updates, the project proceeds exactly as he demands--on time, but at the cost of morale. What type of leadership style is this?
Autocratic Leadership
What is one disadvantage to crowdfunding?
GIVE ONE:
1. Many businesses do crowdfunding, so it's hard to stand out
2. Lots of regulations to post on the platform
3. Fees are paid to the hosting website
A group of monkeys wants to make a banana cake for a birthday order, however, they do not have enough banana peels to afford the products currently. What source of finance works best?
Trade credit.