According to Equity Theory

question 80

Multiple Choice

According to equity theory:

• A)we compare ourselves with a comparison other only when we are certain that inequity exists.
• B)our comparison other never exists in real life.
• C)our comparison other is always someone in another organization.
• D)we choose people as comparison others only when we know that they receive fewer outcomes than we do.
• E)none of these statements are truE.

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Definitions:

Expected Loss

An estimated amount a company anticipates losing due to credit risk or other potential business risks.

Lawsuit

A legal action taken by one person or entity against another person or entity, typically in a court of law, over a dispute.

Financial Statements

Structured reports detailing the financial performance, position, and cash flows of a business, serving as a primary source of financial information.

Long-term Note

A debt instrument that extends for a period beyond one year, representing a borrower's promise to pay back a sum of money to the lender at a specified interest rate.