In Equity Theory, an Under-Rewarded Individual Is Likely to ________

question 21

Multiple Choice

In equity theory, an under-rewarded individual is likely to ________.

• A)have high motivation to show his or her value to the organization
• B)lack motivation because he or she does not receive enough reward for what he or she does
• C)have just the right motivation to get the job done
• D)have high motivation due to high self-esteem

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Definitions:

Hostile Takeover

An acquisition attempt by a company or individual that is strongly opposed by the target company's management and board of directors.

Equity Carve-out

A corporate strategy where a company sells a portion of the equity of a wholly owned subsidiary or division through an initial public offering.

Spin-off

A type of corporate restructuring where a company creates a new independent company by selling or distributing new shares of its existing business.

Lockup Transaction

Agreements restricting company insiders from selling their shares for a set period after an initial public offering to prevent a sudden oversupply of stock.