The answer is psychological contract.
A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.
Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.
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In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.
Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.
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Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
<span>Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? Positive incentive. A positive incentive is a value that is given during the performance of a regular behavior. As long as Tina does what she is supposed to her parent's will continue to pay her car insurance. There is a reward for her doing what she </span>should be doing on her own which is motivating her to continue to do it.
Answer:
a. decrease of $18,000
Explanation:
The calculation of overall effect on the company's monthly net operating income is shown below:-
<u>Particulars Current Proposed
</u>
Sales $800,000 $837,000
($200 × 4,000) (200 - 14) × (4,000 + 500)
Variable
expenses $160,000 $180,000
(40 × 4,000) (40 × (4,000 + 500))
Contribution
margin $640,000 $657,000
Fixed
expenses $531,000 $566,000
($531,000 + 350,00)
Net operating
income $109,000 $91,000
Decrease in net operating income is
= $109,000 - $91000
= $18,000
Answer:
The concept of economic profit ....... <u>alternative</u> two options.
If economic profit is positive .......... <u>Current </u>option.
If economic profit is negative............ <u>Other </u> option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two<u> alternative</u> options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose<u> Current </u>option, as it will make <u>Better off </u>, having more benefit than other option
Negative Economic Profit implies - one should choose <u>Other </u> option, as it wil make better off, having more benefit than the former considered option.