________ Are Generous Severance Packages, Negotiated by Executives, Which They

question 19

Multiple Choice

________ are generous severance packages, negotiated by executives, which they receive if the company is taken over by another company.

• A) Silver linings
• B) Fringe benefits
• C) Maquiladoras
• D) Life insurance policies
• E) Golden parachutes

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Definitions:

Savings

Money that is set aside from income not used for consumption, which may be stored for future expenses, investments, or emergencies.

Capital Stock

The total amount of physical and financial assets owned by a company or country, including buildings, machinery, and equity investments.

Net Investment

The amount of investment in new capital (such as equipment, buildings, and inventory) minus depreciation of existing capital.

Depreciation

A reduction in the value of an asset over time, due to wear and tear, age, or obsolescence.