Which of the Following Statements Is True About Terminating Employees

question 65

Multiple Choice

Which of the following statements is true about terminating employees?

• A) Employers have legal rights to fire employees for whistle-blowing.
• B) The Age Discrimination in Employment Act requires dismissal of an employee who reaches a certain age.
• C) Worker buyouts are usually undertaken to stop employees from voluntarily departing.
• D) Rightsizing usually involves downsizing the workforce.
• E) Layoffs refer to firing employees because of violation of company policies.

---

Definitions:

Disposable Income

The income left over for personal spending after direct taxes have been subtracted from an individual’s gross income.

Consumption

The use of goods and services by households or individuals, typically relating to spending on products and services.

Permanent Income Hypothesis

A theory suggesting that a person's consumption at a point in time is determined not just by their current income but by their longer-term income expectations.

Consumer Binge

A period characterized by excessive spending and consumption by consumers.