Activity 5

Direction: Explain each questions, before you begin writing, read the passage carefully and plan what
you will say. Your essay should be as well organized and as carefully written as you can make it. Read
carefully, reflect on and record your responses to the following questions.

1. What is takeover?

Takeover permits ineffective members to be replaced against their desire. Furthermore, members of the
Board of Directors' behavior is influenced by the fear of a takeover. As a result, an effective market for
corporate control is a must for a successful management system. The problem of takeover is crucial in
many respects.

2. Differentiate Power Supremacy and Technical Expertise

Formal authority over activities gives a leader legitimate power. Legitimate power is linked to position,
but referent and expert power is linked to the individual. In this context, a leader's scope of authority is
most often tied to his or her legitimate power.