Alex who is a regional lending manager with Big Bank plc based in Staffordshire has the authority to lend up to £1 m on an unsecured basis to any single corporate customer without reference to his head office.
What sort of power is this?
Select ONE answer:
- Referent power
- Expert power
- Legitimate power
- Reward power
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct –> A company’s procedures allow the manager to authorise lending up to £1m. This is legitimate power – power given by his position and bank procedures.
- Not correct
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