Which of the Following Statements Is Supported by the Equity

question 60

Multiple Choice

Which of the following statements is supported by the equity theory?

• A)Inequity causes dissatisfaction.
• B)Equity will result in an effort to restore balance.
• C)If the ratios of outcomes/inputs are equivalent, people will be dissatisfied.
• D)Assessments of equity are usually made objectively.
• E)Equity causes people to be dissatisfied with their treatment.

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Definitions:

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, often involving experimental or theoretical work.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Accelerated Depreciation

A depreciation method that allows for a higher depreciation charge in the early years of an asset's life and less in the later years.

Depreciable Assets

Assets subject to depreciation, reflecting the reduction in value due to wear and tear, decay, or decline in usefulness over time.