For Organizations Relying on New Product Innovation and for Which

question 32

Multiple Choice

For organizations relying on new product innovation and for which the commitment and efforts of employees are key drivers of organizational performance,which of the following talent philosophies would be most appropriate?

• A) viewing employees as assets
• B) viewing employees as investors
• C) keeping salaries as low as possible to control costs
• D) hiring as many people as possible

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Definitions:

Effective Interest Rate

The actual cost of borrowing or the actual return on investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The gradual reduction of a debt over a period of time by periodic payments of principal and interest sufficient to repay the loan by maturity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Bonds Payable

represent long-term debt securities issued by corporations or governments, obligating the issuer to pay the bondholder the principal plus interest.