One Shortcoming of Incentive Theories Is That They

question 674

Multiple Choice

One shortcoming of incentive theories is that they:

• A) describe but fail to explain behavior.
• B) fail to explain behaviors that are not primarily motivated by any kind of external incentive.
• C) only explain behaviors that have internal incentives as motivators.
• D) can account for the initiation and persistence of behavior, but fail to account for the intensity of behavior.

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership interest in a company.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Corporate Income

The total revenue of a corporation minus operating expenses, taxes, and interest.

Stockholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.