Figure 14-2

question 74

Multiple Choice

Figure 14-2. The figure shows a utility function for Mary Ann.
-Refer to Figure 14-2. From the appearance of the utility function, we know that

• A)Mary Ann is risk averse.
• B)Mary Ann gains more satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
• C)the property of increasing marginal utility applies to Mary Ann.
• D)All of the above are correct.

Recognize and differentiate between organizational citizenship behaviors and counterproductive work behaviors.

Understand the role and significance of corporate social responsibility within organizations.

Comprehend the concept and components of High-Performance Work Practices (HPWP) and their relevance in leveraging human capital.

Define intellectual capital and its importance to organizational knowledge and success.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Average Operating Assets

The average value of assets used in the normal operation of a business, calculated over a specific period.

Net Operating Income

Net Operating Income is the total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating costs.

Residual Income

Income that remains after all operating expenses and costs of capital have been deducted from net operating income.