Tim Owns a Fruit Distribution Company and Hires Around 100

question 10

Multiple Choice

Tim owns a fruit distribution company and hires around 100 employees.Before PPACA became a law,he did not provide health insurance coverage for the workers.After March 2010,he started to provide the coverage.However,from then on,the costs of his company have been increasing exponentially.Which of the following cannot be one of the ways to limit the rising costs of offering health care coverage?

• A)lowering wages to offset the costs of health insurance
• B)decreasing the size of his workforce
• C)limiting the waiting periods to receive health care coverage to 90 days (for new workers)
• D)imposing lifetime benefit caps at $1 million

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Definitions:

Short-Selling

The practice of selling securities or other financial instruments that are not currently owned, with the intention of repurchasing them at a lower price.

Writing Options

The act of creating an options contract to sell to another party, involving the obligation to buy or sell the underlying asset if the option is exercised.

Risk Lover

An individual or investor who prefers to take more risk in their investments for the possibility of higher returns.

Risk-Neutral

An attitude or assumption in financial theory where an investor doesn't require higher returns for taking on more risk.