John Just Graduated from College and Is Making $35,000 a Year

question 21

Multiple Choice

John just graduated from college and is making $35,000 a year as an elementary school teacher. Although he desires to make a six-figure salary within the next ten years he has a feeling of relative gratification when he compares himself to people in other groups. Based on this, which group would create this feeling of relative gratification that John is experiencing when he uses it as a reference group?

• A) homeless people
• B) college professors
• C) elementary school principals
• D) CEOs of major companies

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Definitions:

Cash Collections

The process of gathering all cash payments received from customers over a period.

Cost Of Installment Goods Sold

The cost attributed to products sold under an installment sales agreement, recognizing expenses as revenues are realized.

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale or production.

Continuing Franchise Fees

Regular payments made by franchisees to the franchisor for ongoing support and the right to continue operating under the franchisor's brand and system.