According to Expectancy Theory,the Probability of an Individual Acting a Particular

question 23

Multiple Choice

According to expectancy theory,the probability of an individual acting a particular way depends on the strength of belief the individual has in which of the following?

• A) that the act will have a particular outcome and on whether the individual values that outcome
• B) that supervisors treat their employees with equity
• C) that the job responsibility is adequate
• D) that the job is challenging

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Definitions:

Interest Tax Shield

The tax savings achieved by deducting payable interest on debt from taxable income, thereby reducing the overall tax expense.

Deductibility

Deductibility refers to the eligibility of an expense to be subtracted from gross income to reduce taxable income, under tax regulations.

Tax Savings

Reductions in tax payments achievable through various deductions, credits, or allowances.

Equity Risk

The risk of loss associated with fluctuations in the equity market, impacting the value of stocks and shareholders' investments.