There Is a Limited Pool of Resources in the Company

question 37

Multiple Choice

There is a limited pool of resources in the company to give raises to the employees. Which of the following options would an individualist prefer?

• A) getting a larger raise than everyone else
• B) getting the biggest raise possible
• C) getting a raise that allows everyone else to get a raise as well
• D) forgoing a raise so that others can have larger raises

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Definitions:

Opportunity Costs

The price paid for not selecting the next most favorable choice when a decision is made.

Asset Replacement

The process of substituting old assets with new ones to maintain or improve operational efficiency.

Asset Expansion

The process of increasing a company's investment in current and fixed assets to boost its capacity and efficiency.

Pretax Proceeds

The amount of money generated from a sale or transaction before any taxes are deducted.