1. Multiple Choice: Which leadership theory emphasizes the importance of situational context and leader flexibility? a) Trait Theory b) Behavioral Theory c) Contingency Theory d) Transactional Theory Correct Answer: c) Contingency Theory Rationale: Contingency Theory suggests that the effectiveness of a leadership style is contingent on the setting and situation. It implies that there is no one best way to lead, and that leadership style should align with the circumstances at hand. 2. True/False: Transformational leaders typically focus on short-term goals and maintaining the status quo. Answer: False Rationale: Transformational leaders are known for their focus on longterm vision, inspiring change, and moving beyond the status quo to achieve higher levels of performance.