Sarah Does the Same Job as Trevor and Has the Same

question 20

Essay

Sarah does the same job as Trevor and has the same position title.Both work the same hours and talk throughout the day about their jobs.Recently, she discovered that Trevor had received a pay increase while she had not.Using the equity theory as a model of motivation, explain what Sarah may be feeling.

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Definitions:

Corporation

A corporation is a legal entity that is separate and distinct from its owners, authorized to act as a single entity and recognized as such in law for the purposes of conducting business, borrowing funds, suing, and being sued.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Fair Value

The estimated market price of an asset or liability, based on current conditions and the willing buyer-seller principle.

Capital

The owner’s investment of equity in the company.