Which of the Following Would Increase the Likelihood That a Company

question 40

Multiple Choice

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

• A) An increase in the corporate tax rate.
• B) An increase in the personal tax rate.
• C) The Federal Reserve tightens interest rates in an effort to fight inflation.
• D) The company's stock price hits a new low.
• E) An increase in costs incurred when filing for bankruptcy.

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Definitions:

Bargaining Unit

A collection of workers, united by common interests, who are represented in negotiations by a single labor union.

Union Members

Individuals who belong to a labor union, contributing dues and participating in collective activities to improve their work conditions and rights.

Partial Fee

A fee structure where only a portion of the overall cost is charged, often encountered in service agreements or consultancy contracts.

Due Check-off Clauses

Provisions in a collective bargaining agreement that require employers to deduct union dues or fees from employees' paychecks and remit them to the union.