Final answer:
The leadership theory focusing on readiness and termed as the situational model is the life cycle theory of leadership.
Step-by-step explanation:
The leadership theory that focuses on the concept of readiness and is also referred to as the situational model of leadership is the life cycle theory of leadership. This theory proposes that the effectiveness of a leadership style is contingent on the level of the followers' maturity or readiness. The life cycle theory emphasizes that leaders need to adapt their style based on the followers' readiness to perform in a given situation, which varies according to their ability and willingness.
This is distinct from transactional leadership, which revolves around supervision, goals, and a system of rewards and punishments, and transformational leadership, which involves leaders who are charismatic, inspirational, intellectually stimulating, and considerate.