Steve Boston Is Experiencing Overpayment Inequity

question 23

Multiple Choice

Steve Boston is experiencing overpayment inequity. According to equity theory, which of the following would LEAST LIKELY be an explanation for this?

• A) He is making more than he did a year ago but feels as if he is putting less into his job now than he did a year ago.
• B) He perceives he receives better treatment from his superiors than do others who are doing the same things he is.
• C) He believes management discriminates against some of his coworkers by paying them less than he makes because they do not have a college education, even though their performance and behaviors are identical to his.
• D) He and his coworkers have to work more overtime than he had anticipated they would, but make overtime pay doing so.

---

Definitions:

Strategic Planning

The process of defining a company's direction and making decisions on allocating resources to pursue this direction.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without needing to increase its financial leverage.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without resorting to external financing.

Short Term Forecasting

The practice of predicting the near-future outcomes of various variables such as sales or market trends over a short period, usually less than one year.