Managers Can Use Equity Theory to Do Which of the Following

question 60

Multiple Choice

Managers can use equity theory to do which of the following?

• A) determine which employees would benefit from having a goal
• B) improve worker satisfaction
• C) match reward to performance for each individual employee
• D) determine which employees are not working efficiently

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Definitions:

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Initial Margin

The initial margin is the upfront investment required when buying on margin or entering a futures contract, acting as a security deposit for the trade.

Maintenance Margin

The minimum amount of equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.

Interest Rate Swaps

Financial derivatives contracts where two parties exchange interest rate payments on a specified principal amount, typically exchanging fixed for floating rates.