An S Shareholder's Basis in His or Her Stock Can

question 47

True/False

An S shareholder's basis in his or her stock can be reduced below zero.

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Definitions:

ERG Theory

is a theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Herzberg's Two-Factor Theory

A theory that separates workplace factors into Motivation factors, which can improve employee satisfaction, and Hygiene factors, which can cause dissatisfaction if absent but not necessarily improve satisfaction if increased.

Motivators

The factors in Herzberg’s theory that cause real, long-term motivation, usually containing intrinsic motivation factors (examples: interesting and challenging tasks, advancement, achievement, growth).

Instrumentality

The likelihood that something good (or bad) will come from an increase in effort.