Joe Was Hired Out of College for a Starting Salary

question 20

Multiple Choice

Joe was hired out of college for a starting salary of $55 000 a year. Two months after he started, he found out that Nancy was hired at the same time for $65 000. At first he was angry but then he found out that she had five years of previous experience and that she knew two more computer languages than he did. Then he wasn't angry anymore. This illustrates the ________ motivation theory.

• A) two-factor
• B) expectancy
• C) hierarchy of needs
• D) human relations
• E) equity

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Definitions:

Guaranteed Residual Value

The predetermined value at which a lessee can buy a leased asset at the end of the lease term, as guaranteed by the lessee or a third party.

Cost of Goods Sold

The specific expenses related to manufacturing the products that a business sells, encompassing labor and materials.

Present Value

The immediate worth of a forthcoming amount of money or stream of cash inflows, evaluated at a particular rate of return.

Undiscounted Value

The future cash flow or financial benefits of an investment without applying a discount rate to account for the time value of money or inherent risks.