The Theory of Motivation That Is Based on the Perceived

question 4

Multiple Choice

The theory of motivation that is based on the perceived fairness of transactional relationships between individuals and organizations is:

• A) Equality theory
• B) Equity theory
• C) Egalitarian theory
• D) Balance theory

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Definitions:

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a company’s common stock.

Diluted EPS

Earnings per share calculated by including all convertible securities, warrants, options, and other financial instruments that could potentially dilute the earnings per share if exercised.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of common shares, usually after a predetermined date.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company. These shares do not earn dividends and have no voting rights.