Under the Provisions of the Employee Polygraph Protection Act (EPPA)

question 21

Multiple Choice

Under the provisions of the Employee Polygraph Protection Act (EPPA) :

• A) At the option of an employer, all job applicants may be required to take polygraph tests.
• B) Routine use of polygraph tests is permitted in organizations that are concerned with nuclear power.
• C) An employee's failure of a polygraph test must result in the employee's discharge.
• D) Any employer is permitted utilize polygraph testing as long as the employees to be tested are selected at random.

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Definitions:

Debt-equity Ratio

An indicator that differentiates the financing portion between debt and equity for company assets.

External Financing

Funds a company acquires from outside sources, such as bank loans, issuing bonds, or selling stock, to support its operations and growth initiatives.

Full Capacity

Full capacity refers to the maximum level of output that a company can sustain over a period, utilizing all available resources efficiently.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned activities when internal cash flow is insufficient.