If Firms Are More Optimistic That Future Profits Will Rise

question 182

Multiple Choice

If firms are more optimistic that future profits will rise and remain strong for the next few years, then

• A)planned investment spending will fall.
• B)planned investment spending will rise.
• C)unplanned investment spending will remain unaffected.
• D)planned investment spending will rise and then fall.
• E)unplanned investment will rise.

---

Definitions:

Pay Structure

The system or arrangement outlining how employees are compensated, including salary ranges, grades, and levels, based upon their role, experience, and performance.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Pay Structure

A framework for systematically organizing and categorizing an organization's salaries, wages, and pay grades.

Equity Theory

A theory of motivation proposing that individuals are most motivated when they perceive their treatment in terms of rewards and contributions to be equal to others'.