The Board of Directors of August Inc

question 18

Multiple Choice

The board of directors of August Inc., a company that provides legal services, has been debating over whether to provide its 99 full-time employees with health insurance. The managers of the firm, however, are considering dropping employee health insurance as a benefit. Which of the following statements strengthens the managers' consideration?

• A)The fine that August Inc. would face would be cheaper than the current premiums for health insurance.
• B)The Affordable Health Care Act requires firms with over 50 employees to provide health insurance for their workers, or face fines.
• C)The federal Affordable Health Care Act, enacted in 2009, mandates that health insurers cover even those with preexisting conditions.
• D)The revised policy would help August Inc. erect entry barriers in its industry and change the nature of rivalry in the industry with most of the small firms.

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Definitions:

NAFTA

The North American Free Trade Agreement, a trilateral trade bloc in North America created by Canada, Mexico, and the United States.

United States

is a federal republic in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Ordinance

A piece of legislation enacted by a municipal authority covering matters not already covered by federal or state law.

Cost Benefit Analysis

An evaluation process that compares the costs and benefits of a project or decision to determine its viability or worth.