The 'Equity' Problem Is

question 20

Multiple Choice

The 'equity' problem is

• A)fundamentally about the distribution of income in the capitalist system, and what seems fair given different people's inputs, job security, advancement, recognition, diversity, and flexible work schedules.
• B)about banks' inadequate reserves of equity compared to their debt funding from savers.
• C)about excessive gearing generally in the financial system, and the failure of global regulators to ensure adequate reserve ratios.
• D)the old agency problem: shareholders being ripped off by managers giving themselves bonuses that are far too generous.

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Definitions:

Consideration

The act of thinking carefully about something or someone, often before making a decision; also refers to the quality of being thoughtful towards others.

Compromiser

Someone who makes concessions or finds the middle ground in conflicts or disputes to reach a mutually acceptable resolution.

Behavioral Approach

A research and leadership methodology focused on studying and analyzing the behaviors of leaders and their impact on team performance and outcomes.

Leader Behaviors

Actions or conducts demonstrated by leaders that influence the performance, satisfaction, and well-being of followers.