The Idea That a Manager Who Accepts a Foreign Assignment

question 74

Multiple Choice

The idea that a manager who accepts a foreign assignment is entitled to the same standard of living the manager enjoyed at home is the basis for ________.

• A) cost-of-living allowance
• B) bonus
• C) hardship premium
• D) tax equalization adjustment

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Definitions:

Von Neumann-Morgenstern

A theory of expected utility that describes how rational individuals choose among uncertain prospects, emphasizing the maximization of utility for decision-making under uncertainty.

Utility Function

A mathematical representation in economics that portrays an individual's preference ranking for different bundles of goods or outcomes.

Expected Utility

A theory in economics that calculates the utility expected from different choices to assess risk and make decisions.

Income

The financial gain that an individual or business receives, usually from employment, business activities, or investments.