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Apply your knowledge of research on helping to analyze the behavior and motives of Tim, the individual described below, to determine whether he is behaving altruistically or selfishly. Give reasons to explain Tim's behavior and motivation based on the critical reading discussion and other information in the chapter.
Tim attended a meeting of a campus social group that sponsored charity events to help under-privileged children. The chair of the group described a new event that was intended to help poor children buy school supplies for the school year. When Tim saw pictures of some of the children with tattered clothing who often went to school hungry, he thought, "That is so sad. I have so much and never had to worry about that. I will definitely contribute." When the chair asked for volunteers to help distribute the supplies, Tim thought, "I'm really busy. I don't know if I can spare the time-anyway, other people will volunteer." When Tim looked around the room, no hands were going up. Then he saw Jontel, a cute girl from his psychology class, also looking around the room. Tim raised his hand to volunteer.
Operating Leverage
A measure of how sensitive a company's operating income is to a change in revenue, indicating the level of fixed versus variable costs.
Financial Leverage
The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.
EPS
Earnings Per Share, a measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.
Earnings Per Share
A company's net income divided by the number of its outstanding shares, indicating the company's profitability on a per-share basis.
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