You Graduated from College Two Years Ago and Began Working

question 44

Multiple Choice

You graduated from college two years ago and began working at Hampstead Electronics. You have received good performance evaluations and a raise. You just found out that your organization has hired a recent college graduate with no experience at a higher salary than you are now making. You consider this an unfair act and resolve to do something about it.
-Which of the following theories best describes such a situation?

• A) equity theory
• B) two-factor theory
• C) goal-setting theory
• D) theory of needs
• E) self-determination theory

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Definitions:

Breakeven Analysis

Pricing-related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Unit Contribution

The amount each unit sold contributes to covering fixed costs and generating profit, calculated as the unit selling price minus variable cost per unit.

Penetration Pricing

Strategy that sets a low price as a major marketing tactic.