When Should Organizations Use Reality Shock

question 43

Multiple Choice

When should organizations use reality shock?

• A) When they want employees to develop better expectations of future work experiences.
• B) When they want to ensure that employees develop a stronger loyalty to the organization.
• C) When they want to help newcomers develop a stronger bond with coworkers and the organization.
• D) Under all of these conditions.
• E) Never; companies should minimize reality shock.

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Definitions:

Capital Lease

A lease agreement that has the characteristics of a purchase agreement, where the lessee assumes most of the risks and rewards of ownership.

Executory Costs

Refers to the expenses incurred in executing a contract, often related to leasing agreements, such as insurance, maintenance, and property taxes.

Operating Expenses

Costs associated with the day-to-day functions of a business, not including the cost of goods sold but typically covering administrative, sales, and general expenses.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules, and procedures defined by the professional accounting industry in a specific country.