Killian Corp

question 20

Multiple Choice

Killian Corp.has a residual income of $30,000 on invested assets of $450,000.If the hurdle rate is 10%,what is the operating income?

• A)$30,000
• B)$45,000
• C)$3,000
• D)$75,000

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Definitions:

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expectations of how much their effort will lead to desired performance and rewards.

Expectancy

The belief about the likelihood that a particular effort will lead to a particular level of achievement or outcome.

Performance Accomplishment

Achievements or outcomes that demonstrate an individual's or group's effective execution of tasks, often measured against pre-defined standards or goals.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on the expected outcomes of their actions.