What Are the Three Major Principles of Allocating Rewards? Discuss

question 16

Essay

What are the three major principles of allocating rewards? Discuss how each principle works.Why is equality preferred in more collectivistic cultures while individualistic cultures favor equity?

---

Definitions:

Short-Term Bank Loans

Loans provided by banks that are typically due for repayment within a year or less.

Banks

Financial institutions licensed to receive deposits, offer loans, and provide various other financial services.

Repay

To pay back or return money that was borrowed from a person, bank, or financial institution.

Risk

The potential for loss or the chance that an investment's actual return will differ from the expected return.