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According to equity theory, employees compare their outcomes to other employees' inputs.
Residual Policy
A dividend policy where dividends are paid out from residual or leftover earnings after all productive investment opportunities are funded.
Compromise Policy
A policy approach that aims to find a middle ground or agreement between differing parties, especially in legislative or corporate settings.
Cash Dividend
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.
Growth Opportunities
Prospects or opportunities for a business or investment to expand, leading to increased profits.
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