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Amanda McPherson Is a Working Mother with One Child and an Ailing

question 34

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Amanda McPherson is a working mother with one child and an ailing parent to look after in addition to her duties as a wife and job responsibilities as a legal consultant. Since Amanda always feels pressed for time, the news that the consultancy she works for would allow her to work from home two days a week came as a great relief to her. She now feels more motivated to work for the company, as the company has taken into account her personal and professional needs. The company has allowed Amanda to use the option of ________.


Definitions:

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.

Accounts Payable

Accounts Payable is the amount of money a company owes its suppliers for goods or services received but not yet paid for.

Basic Earning Power Ratio

A financial ratio that shows how effectively assets are being used to generate earnings before the influence of taxes and financing costs.

Times-Interest-Earned Ratio

A measure of a company's ability to honor its debt payments, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

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