When a Firm Employs No Debt

question 60

Multiple Choice

When a firm employs no debt

• A) it has a financial leverage of one.
• B) it has a financial leverage of zero.
• C) its operating leverage is equal to its financial leverage.
• D) it will not be profitable.

Assess the financial implications of cafeteria-style plans for employers.

Recognize the role of wellness programs and consumer-directed health plans in controlling healthcare costs.

Distinguish between the most common types of insurance benefits offered to employees.

Understand the legal requirements and limitations on paid vacation in the United States.

---

Definitions:

Robber's Cave Study

An experiment on intergroup conflict and cooperation conducted by Muzafer Sherif, illustrating how competition can lead to hostility and how cooperative goals can reduce intergroup conflict.

Prejudice

A preconceived opinion or bias against an individual or group without sufficient knowledge, reason, or experience.

Stereotypes

Preconceived and oversimplified ideas or images about certain groups of people, often based on race, gender, or other characteristics, that may lead to biased judgments.

Poverty

A socioeconomic condition characterized by a lack of financial resources and access to basic needs, such as food, water, education, and healthcare.