The Performance-Reward Linkage Described in the Expectancy Theory of Motivation

question 70

True/False

The performance-reward linkage described in the expectancy theory of motivation refers to employees' beliefs that working harder will lead to better performance.

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Definitions:

Net Present Value

The current value of an investment's projected earnings, discounted at an appropriate interest rate, minus the initial capital cost.

Required Rate

The lowest return an investor is willing to accept on an investment to deem it as profitable.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate of tax that applies to their highest bracket of income.

Operating Cash Flow

Cash generated by a company's normal business operations, indicating whether a company is capable of generating sufficient positive cash flow to maintain and grow its operations.