The _____ Theory Argues That Executive Pay Rises to Maintain

question 30

Multiple Choice

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.

• A)economic approach
• B)team production
• C)social comparison
• D)agency

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress, as proposed by Hans Selye.

Alarm Stage

The initial reaction of the body's stress response system, involving activation of the sympathetic nervous system to prepare to face or flee from a threat.

Sympathetic Nervous System

A part of the autonomic nervous system that activates the body's responses under stress, triggering the fight-or-flight response.

Parasympathetic Nervous System

The part of the autonomic nervous system responsible for conservation of energy and relaxation of the body, often referred to as the "rest and digest" system.