Rational Choice Theorists Would Define the Behavior of Corporate Executives

question 10

Multiple Choice

Rational choice theorists would define the behavior of corporate executives who outsource many jobs to countries where the cost of labor is substantially less than in the United States as being:

• A) instrumental
• B) expressive
• C) habitual
• D) affective

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors and approving company policies.

Purchase

The act of acquiring goods or services in exchange for money, signifying a transaction between two parties.

Share Issue

The process by which a company distributes its shares to investors, thereby raising capital.