Which of the Following Is FALSE About Equity Theory

question 133

Multiple Choice

Which of the following is FALSE about equity theory?

• A) People compare themselves to co-workers, others elsewhere in the organization, and people in other organizations.
• B) It only matters how people think they are treated; it does not matter what is really happening from the manager's perspective.
• C) People believe that working hard will result in achieving a desired level of task performance.
• D) People compare their personal outcomes to others' outcomes with the result of perceived equity.
• E) People will make equity comparisons whenever rewards are allocated.

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Definitions:

Appraisal Remedy

A right that allows shareholders to demand a judicial determination of the value of their shares during certain corporate actions, such as mergers.

Articles of Incorporation

Official papers submitted to a governmental authority to officially register the formation of a company.

Assets Obligations

Duties or debts that an individual or entity is required to fulfill based on ownership of assets.

Merger

The combination of two or more companies into one, where one survives and the others cease to exist.