Maria Joins the Union After Calculating That with the Union

question 8

Multiple Choice

Maria joins the union after calculating that with the union she will increase her net pay from the company by 4% after union dues compared with the 2% per year increase that she has been receiving.What is Maria's reason for joining the union called?

• A) A dissonance-based reason
• B) A utility-based reason
• C) A political/ideological reason
• D) A grievance reason
• E) A career planning reason

---

Definitions:

Return on Equity

A measure of a corporation's profitability, calculated by dividing net income by shareholder equity, indicating how effectively equity is utilized to generate profits.

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently assets generate profits.

Fixed Asset Turnover

A financial ratio that measures how efficiently a company uses its fixed assets to generate sales.

Du Pont Identity

A financial formula that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.