Which of the Following Statements Is True Regarding Expectancy Theory

question 36

Multiple Choice

Which of the following statements is true regarding expectancy theory?

• A)Expectancy 2 is the likelihood you will receive certain outcomes if you reach acceptable performance.
• B)The values given for outcomes are represented by a value called expectancy 2.
• C)Expectancy 1 is represented on a scale from 1 to 10 with 1 being the minimum.
• D)Expectancy 2 is fixed in a person's mind and is extremely difficult to change.

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Definitions:

Improperly Sequenced

Arranged in an incorrect order that does not follow logical or established progression.

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects, properties, or equipment.

Expected Cash Flows

Forecasts of the amounts, timing, and uncertainty of cash receipts and disbursements that a business anticipates.

Annual Rate of Return Technique

A method to estimate the profitability of potential investments by calculating the projected annual rate of return.