Which of the Following Is Not Likely to Help a Firm

question 30

Multiple Choice

Which of the following is not likely to help a firm motivate its workers to put forth more effort?

• A) providing a free or subsidized company gym and/or cafeteria
• B) installing monitoring equipment
• C) providing competitive year-end bonuses
• D) implementing a profit-sharing scheme
• E) All of these are likely to motivate workers to put forth more effort.

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Definitions:

Investment

The act of allocating resources, typically money, with the expectation of generating an income or profit.

Opportunity Cost of Capital

The return foregone by investing in a project instead of in comparable financial assets with similar risk.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) expected from an investment, adjusted for time and interest.

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.