Every Time Theodore Decides to Take an Extra-Long, Three-Hour Lunch

question 15

Multiple Choice

Every time Theodore decides to take an extra-long, three-hour lunch, his boss makes him stay late to make up the missed work. Eventually, Theodore quits taking long lunches. Theodore's boss is using ____ theory to help Theodore change his behavior.

• A) expectancy
• B) agency
• C) compensation
• D) reward
• E) reinforcement

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Definitions:

Fair Value

An estimate of the price at which an asset or liability would be traded in a fair transaction between willing participants in the market.

Net Income

The remaining income of a business after deducting all expenditures and taxes from the gross revenue.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, where the investment is recorded at original cost and adjusted for the investor's share of the investee's profit or loss.

Outstanding Voting Stock

The shares of a corporation that are issued, held by shareholders, and entitled to vote in corporate decisions.