The Hawthorne Studies Originally Concluded That Supportive Managers Paying Attention

question 26

Multiple Choice

The Hawthorne studies originally concluded that supportive managers paying attention to workers made them more productive.However,a reanalysis of the data suggested that the productivity increase was due to managerial discipline and _______________.

• A) fear of job loss
• B) peer pressure
• C) productivity bonuses
• D) job training

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Definitions:

Firm's Stock

The capital raised by a corporation through the issuance and subscription of shares representing ownership interest in the company.

Dividend Cuts

A reduction in the dividend payments announced by a company, often due to financial difficulties or a need to retain more earnings for investments.

Target D/E Ratio

The desired debt-to-equity ratio that a company aims to achieve to optimize its capital structure.

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.