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Multiple Choice
Which type of power can a local community use to influence a company's decisions?
A
Judicial power, by directly passing laws in court
B
Diplomatic power, by negotiating international treaties
C
Economic power, such as organizing boycotts or supporting local competitors
D
Military power, by deploying armed forces
Verified step by step guidance
1
Step 1: Understand the types of power listed and their typical roles. Judicial power involves courts and legal rulings, diplomatic power involves international relations, economic power involves financial influence, and military power involves armed forces.
Step 2: Recognize that a local community usually does not have judicial authority to pass laws or military authority to deploy armed forces, as these powers are typically held by governments.
Step 3: Consider the practical ways a local community can influence a company's decisions. Economic power, such as organizing boycotts or supporting local competitors, directly affects the company's revenue and market position.
Step 4: Eliminate options that are not applicable to a local community's influence, such as judicial power (which requires courts) and diplomatic power (which involves international treaties).
Step 5: Conclude that economic power is the most relevant and effective type of power a local community can use to influence a company's decisions.