Steve Has a Small Company with 12 Employees

question 16

Multiple Choice

Steve has a small company with 12 employees.One of his employees, Larry, has been laid off because his work has been outsourced.Larry had health coverage through Steve's company and wants to continue that coverage.According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off?

• A)36 months
• B)24 months
• C)18 months
• D)0 months

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice.

Receiving Report

The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected.

Supplier's Invoice

A document issued by a supplier listing the products or services provided, their quantities, and the agreed prices, to request payment from the buyer.

Purchase Order

The purchase order authorizes the purchase of the inventory from an approved vendor.