According to the Spotlight on Small Business Box in Chapter

question 125

Multiple Choice

According to the Spotlight on Small Business box in Chapter 11,which of the following strategies can be used to attract qualified employees to work for a small business?

• A)test-drive an employee
• B)post job openings in the local supermarket
• C)hire permanent employees with the promise of health insurance as a benefit
• D)offer an initial high starting salary

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Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period.

Market Rate

The interest rate available in the marketplace for similar transactions.

Times Interest Earned Ratio

A financial metric that evaluates how well a company can cover its interest expenses with its earnings before interest and taxes.