Veronica Sets Up a Business Consulting Firm in Which the Employees

question 39

Multiple Choice

Veronica sets up a business consulting firm in which the employees are motivated because they find their work interesting and creative.She carefully hires workers who fit well with their assigned tasks.Also,she clearly defines the results expected of each worker,but allows the workers to determine the means to these results.Which of the following best describes Veronica's business?

• A) a firm that relies on high input controls to tap into intrinsic motivation
• B) a firm that relies on high input controls to tap into extrinsic motivation
• C) a firm that relies on high output controls to tap into intrinsic motivation
• D) a firm that relies on high output controls to tap into extrinsic motivation

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Definitions:

EPS

Earnings per share, a key indicator that calculates the portion of a company's profit allocated to each outstanding share of common stock.

Tax Deduction

An expense that a taxpayer is allowed to deduct from taxable income, thereby reducing the overall tax liability.

Financial Leverage

The use of borrowed money (debt) to amplify the potential return of an investment.

Corporate Interest

Interest that a corporation pays on its debt obligations, which can impact its financial performance and tax liabilities.