There Are Two Key Problems with Deterrence-Based Trust Systems

question 2

Multiple Choice

There are two key problems with deterrence-based trust systems.First,they can backfire,and second:

• A)insufficient information about punishments in this trust system can make people less interested in rebelling
• B)high levels of trust between managers and employees thrive in this trust system
• C)this system decreases dependence and commitment among parties
• D)they are expensive to develop and maintain

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Definitions:

Net Cash Provided

The amount of cash generated by a company's operations after accounting for outflows and inflows.

Cash Account

An account that shows the amount of cash a company has on hand or in the bank.

Cash Dividends

Profit distributions paid out by a corporation to its shareholders.

Net Income

The company's overall earnings following the subtraction of all costs, taxes, and expenses from the total income.