Richard runs a supermarket chain. All his stores have been experiencing declining sales for the past one year. Richard blames this depletion in sales on the increasing competition in the market. Which of the following theories best explains Richard's behavior in this scenario?
A. Two-factor theory
B. Expectancy theory
C. Equity theory
D. Attribution theory
Answer: D
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Advantages of the virtual corporation concept include that it allows a company to build competence from the ground up and to increase management's control over the corporation's activities.
Answer the following statement true (T) or false (F)
What is the maximum amount that you would be willing to pay for perfect information?
What will be an ideal response?
Hyrkas Corporation's most recent balance sheet and income statement appear below:Balance SheetDecember 31, Year 2 and Year 1(in thousands of dollars) Year 2Year 1Assets Current assets: Cash$150 $190 Accounts receivable, net 220 240 Inventory 190 160 Prepaid expenses 20 20 Total current assets 580 610 Plant and equipment, net 760 740 Total assets$1,340 $1,350 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$160 $190 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 250 280 Bonds payable 150 180 Total liabilities 400 460 Stockholders' equity: Common stock, $2 par value 200 200 Additional paid-in
capital 330 330 Retained earnings 410 360 Total stockholders' equity 940 890 Total liabilities & stockholders' equity$1,340 $1,350 Income StatementFor the Year Ended December 31, Year 2(in thousands of dollars)Sales (all on account)$1,200 Cost of goods sold 730 Gross margin 470 Selling and administrative expense 335 Net operating income 135 Interest expense 21 Net income before taxes 114 Income taxes (30%) 34 Net income$80 Dividends on common stock during Year 2 totaled $30 thousand. The market price of common stock at the end of Year 2 was $6.90 per share.Required:Compute the following for Year 2:a. Gross margin percentage.b. Earnings per share.c. Price-earnings ratio.d. Dividend payout ratio.e. Dividend yield ratio.f. Return on total assets.g. Return on equity.h. Book value per share.i. Working capital.j. Current ratio.k. Acid-test (quick) ratio.l. Accounts receivable turnover.m. Average collection period.n. Inventory turnover.o. Average sale period.p. Times interest earned ratio.q. Debt-to-equity ratio. What will be an ideal response?
Which of the following is true of ‘psychic income’?
. It is perceived value that is not expressed in monetary form. b. It is also referred to as ‘social currency’. c. Brands pay influencers cash to promote their products. d. Both it is perceived value that is not expressed in monetary form and it is also referred to as ‘social currency’. e. None of these.