The Implication of the Two-Factor Theory for Managers Is Clear

question 112

True/False

The implication of the two-factor theory for managers is clear. Providing hygiene factors will eliminate employee dissatisfaction but will not motivate workers to high achievement levels.

Identify the characteristics and implications of different financing activities.

Comprehend the effects of stock actions on a company's equity.

Understand the concepts of net income, net loss, and their impact on equity.

Understand the basics of financial spreadsheet analysis.

---

Definitions:

Substitution Effect

Substitution Effect occurs when consumers replace more expensive items with cheaper alternatives in response to changes in relative prices, holding their overall satisfaction constant.

Relative Prices

Relative prices express the price of one good or service in comparison to another, revealing their value relative to each other rather than in absolute monetary terms.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to normal goods where demand increases with rising income.

Normal Good

A good for which demand increases as the income of the consumer increases, and vice versa, holding all other factors constant.