Clara Williams Perceives That If She Can Complete the Training

question 10

Multiple Choice

Clara Williams perceives that if she can complete the training of 1,200 employees by the end of this year, she will get the promotion she desires. According to expectancy theory, Clara believes that the ________.

• A) valence of completing the employee training is 1
• B) instrumentality of completing the employee training is +1
• C) valence of completing the employee training is -1
• D) instrumentality of completing the employee training is 0

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Definitions:

Market Value

The total value of a company, measured through the market price of its outstanding shares.

Equity

The value of an asset after deducting the amount of liabilities or the ownership interest in a firm.

Call Contract

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Option Contract

An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time.