The Basic Principle of Equity Theory Is That Employees Try

question 103

Multiple Choice

The basic principle of equity theory is that employees try to:

• A)maintain equity between inputs and outputs compared to people in similar positions.
• B) ensure that performance standards are fair and attainable.
• C) earn as much as possible with as little work as possible.
• D)achieve the mutually agreed upon goals of management and employees.

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Definitions:

Voucher Register

A record keeping system that logs all vouchers issued by a business, detailing the authorization of payments.

Purchases Journal

A ledger in accounting used to record all purchases of goods and services on credit.

Shareholders

Shareholders are individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Cash Payment

A transaction where an immediate payment of cash is made in exchange for goods or services.