Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

Which leadership type emphasizes a task-reward orientation?

1. Transformational Leadership

2. Socialized Charisma Leadership

3. Transactional Leadership

4. Charismatic Leadership

The correct answer is: Transactional Leadership

Transactional leadership emphasizes a task-reward orientation, focusing on clear structures, responsibilities, and organizational goals. This leadership style is built on a system of exchanges between leaders and followers. Leaders provide rewards—such as bonuses or recognition—in return for specific task completion or performance results. This approach is particularly effective in environments where tasks are straightforward, and clear performance metrics exist, as it creates motivation through direct rewards for achieving targets. Transactional leaders often clarify expectations and reinforce compliance through incentives, establishing a predictable and structured work environment. This approach differs significantly from transformational leadership, which seeks to inspire and motivate followers toward higher ideals and vision; it also contrasts with charismatic leadership, which relies more on the leader's personal charm and ability to inspire rather than on defined task-reward structures.