Obsolescence

question 189

Multiple Choice

Obsolescence:

• A)Occurs when an asset is at the end of its useful life.
• B)Refers to a plant asset that is no longer useful in producing goods and services with a competitive advantage.
• C)Refers to the insufficient capacity of a company's plant assets to meet the company's productive demands.
• D)Occurs when an asset's salvage value is less than its replacement cost.
• E)Does not affect plant assets.

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Definitions:

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests there are two sets of factors affecting people's work motivation and satisfaction: hygiene factors and motivators.

Acquired Needs Theory

A motivational theory that suggests individuals are driven by their desire to fulfill specific needs acquired over time, such as achievement, affiliation, and power.

Two-Factor Theory

A psychological theory proposed by Frederick Herzberg that explains motivation in the workplace, suggesting that there are factors that cause job satisfaction and factors that cause job dissatisfaction, acting independently.