47) Researchers are conducting a study of a company called Acme Corp., which they believe to
be led by a transformational leader. Which of the following, if true, would most support the
conclusion that Acme’s leader is a transformational leader?
A) Acme’s top managers often disagree over defining the organization’s goals.
B) Acme’s goals tend to be very ambitious and to hold personal value for employees.
C) Acme has a centralized decision-making structure.
D) Acme’s performance has held at average levels for the past three years.
E) Acme’s compensation plans are designed to reward short-term results.
48) Two companies, Roland Media and Go! Corp., are both headed by transformational leaders.
However, Roland Media showed much greater profitability over a 5-year time period than did
Go! Corp. Which of the following best explains why Roland Media performed better than Go!
Corp. under transformational leadership?
A) Roland Media’s leader goes through a complex bureaucratic structure, whereas Go! Corp.’s
leader regularly interacts with the company’s workforce to make decisions.
B) Unlike Go! Corp.’s employees, Roland Media’s employees don’t readily give up decision-
making authority.
C) Roland Media is a small, privately held firm, whereas Go! Corp. is a large, complex public
company.
D) Roland Media is headquartered in a low power distance region, whereas Go! Corp. is
headquartered in a country that is high in power distance.
E) Roland Media’s employees tend to be more highly individualistic than do Go! Corp.’s
employees.