Which of the Following Statements Is True of Equity Theory

question 82

Multiple Choice

Which of the following statements is true of equity theory?

• A)It is based on internal motivation.
• B)It challenges people to grow and invest themselves in an organization.
• C)It is concerned with the social processes that influence motivation and behavior.
• D)It stresses the role of energy recovery in overall performance.

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends to shareholders, but retained by the company for reinvestment.

MACRS 3-Year Class

A category under the Modified Accelerated Cost Recovery System (MACRS) for depreciating certain types of business property over three years.

Amortized

Amortization is the process of spreading out a loan into a series of fixed payments over time, covering both principal and interest.

Residual Value

The estimated value of an asset at the end of its useful life.