Which of the Following Statements About Recent Developments in Employer-Sponsored

question 51

Multiple Choice

Which of the following statements about recent developments in employer-sponsored health plans is true?

• A)Medical coverage for early retirees has increased over time.
• B)Traditional insured plans dominate preferred provider organization (PPO)plans.
• C)Premiums for health insurance have continued to decline.
• D)High-deductible health plans with a savings option have continued to grow.

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the premise that true profit occurs when additional wealth is created for shareholders, beyond the cost of capital invested.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Use of Leverage

The practice of using borrowed money to increase the potential return of an investment, which also increases the risk of loss.

Diluting Existing Shares

A process where a company issues more shares, leading to a reduction in the ownership percentage of existing shareholders.