Justin, an Employee of Widget Corp

question 3

Multiple Choice

Justin, an employee of Widget Corp., is hesitant to leave the company because he thinks that he will lose a great deal of his investments in time, effort, and benefits. In the context of organizational commitments, it is evident that Justin experiences _____.

• A)conjoint commitment
• B)continuance commitment
• C)affective commitment
• D)normative commitment

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing and the real yield to investors.

Nominal Rate

The interest rate before adjustments for inflation, representing the face value of financial transactions.

Rate of Inflation

The measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Net Present Value

The present value of cash flows minus the present value of cash outlays, used in capital budgeting to assess the profitability of an investment or project.