Why Are People Hesitant to Use Coercive (Punishment) Power in Exchanges

question 14

Multiple Choice

Why are people hesitant to use coercive (punishment) power in exchanges with others?

• A)They are afraid that the use of punishment power will reduce the rewards they receive.
• B)They are afraid that an exchange partner will react by punishing them.
• C)They are afraid their behavior will get out of control cause harm to someone.
• D)They engage in role taking and image how they would feel if someone punished them.
• E)They know they will feel guilty if they use punishment in an exchange relationship.

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Definitions:

Carrying Amount

The net value of an asset or liability recorded on the balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Allowance Account

An account used to adjust the carrying value of accounts receivable to the amount expected to be collected.

Contra Account

An account used in conjunction with another account to adjust or offset its balance.

Allowance Account

An account set aside to cover potential losses from doubtful accounts, reflecting estimated uncollectible receivables.