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Discuss Equity Theory

question 50

Essay

Discuss equity theory. Include the concepts of equity tension, referent comparisons, and how employees might reduce perceived inequity.


Definitions:

Periodic Payments

Regular, scheduled payments made over a period of time, such as monthly rent or quarterly insurance premiums.

Borrower

An individual or entity that takes funds from a lender under the agreement to return it with interest or equity.

Bond Issue

The process by which a company or government raises funds by selling bonds to investors.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off as an expense over the bond's life.

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