Which of the Following Is True of Banning Mandatory Retirement

question 19

Multiple Choice

Which of the following is true of banning mandatory retirement?

• A) It reduces the continued employment of older workers.
• B) The wages of younger workers will fall and the wages of older workers will rise further.
• C) It may reduce the employment and promotion opportunities of younger workers.
• D) It has postponed the age of retirement, except for university professors.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without borrowing new funds or seeking additional investment.

Retention Ratio

The proportion of net income that is retained by a company, rather than distributed to shareholders as dividends.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Average Collection Period (ACP)

Measures the average number of days it takes for a company to collect payments from its customers.