A Major Weakness of the Reward Theory Is That It

question 43

Multiple Choice

A major weakness of the reward theory is that it

• A) is impossible to test experimentally.
• B) fails to account for the reciprocal exchange of favors.
• C) easily degenerates into explaining-by-naming.
• D) ignores the role of internal self-rewards in motivating altruism.

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Definitions:

Bond Ratings

Assessments by rating agencies that evaluate the creditworthiness of a bond issuer and the likelihood that it will meet its obligations.

Default Risk

The likelihood that a borrower will fail to meet the obligations of a debt agreement.

Financing Lease

A lease in which the lessee effectively acquires ownership of the leased asset. Also called a capital lease. Accounted for by showing the leased asset on the balance sheet offset by a liability representing the obligation to make future lease payments. Compare with Operating lease.

Balance Sheet

An accounting report displaying the financial condition of a business, including what it owns, owes, and the equity held by shareholders on a given date.