Answer the following statements true (T) or false (F)
1. A shady individual on the street offers you a million dollars if you can tell him what day of the week it is. You know the answer, and would certainly have use for a million dollars, yet your motivation to respond is still low. According to expectancy theory, this suggests a problem with instrumentality.
2. Failing to reward desirable behavior can result in social loafing in teams.
3. Imposing a monetary fine on an employee is never a proper course of action.
4. Setting clear and effective objectives is one of the guidelines for motivating employees using reinforcements.
1. True
2. True
3. False
4. True
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Which of the following interests in real property transfers to another person after the present holder's death?
A) easement B) mortgage C) installment D) life estate
Last year the return on total assets in Justin Company was 8.5%. The total assets were $2,900,000 at the beginning of the year and $3,100,000 at the end of the year. The tax rate was 30%, interest expense totaled $110,000, and sales were $5,200,000. Net income for the year was:
A) $145,000 B) $222,000 C) $332,000 D) $178,000
Match the following terms with the appropriate definition.
A. An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities. B. Beliefs that distinguish right from wrong, considered accepted standards of good and bad behavior. C. The area of accounting aimed at serving external users by providing them with general-purpose financial statements. D. A model that asserts the factors that must exist for a person to commit fraud. E. The part of accounting that involves recording transactions and events, either electronically or manually. F. Accounting specialists that have met educational and experience requirements, passed an examination and exhibit ethical characteristics to achieve a professional certification. G. The area of accounting that serves the decision-making needs of internal users. H. Persons using accounting information who are directly involved in managing and operating the organization. I. Persons using accounting information who are not directly involved in running the organization.
Why are interest coverage ratios typically computed on a pretax basis?
What will be an ideal response?