Question

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
B) expectancy
C) goal setting
D) reinforcement
E) self-enhancement

Answer 1

Answer: (A) Equity

Explanation:

The equity is the term which refers to the financial equity difference between liabilities value to the assets value. It basically helps in understand the investment process properly and also define the worth of the business in terms of assets.

According to the given question, the equity is one of the type of theory that help[s in understanding the given unfair situation. It helps in managing all the technical skills and evaluating the given situation properly by using the systematic approach.  

 Therefore, Option (A) is correct answer.