According to Equity Theory, Inequity in Relationships Is

question 24

Multiple Choice

According to equity theory, inequity in relationships is:

• A) Uncomfortable for the person who is over-benefited.
• B) Uncomfortable for the person who is under-benefited.
• C) Uncomfortable for both partners.
• D) Uncomfortable only if rewards are low.
• E) Uncomfortable only if costs are high.

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Definitions:

Retained Earnings

Profits that a company has kept or retained rather than distributing to shareholders as dividends.

Net Income

The net income of a business once all costs, taxes, and expenses are deducted from its total revenue.

Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were later reacquired and are held in the company’s treasury.