CASE 13.2 Three Brothers Are Arrested Over a Seven-Year Period for Three

question 83

Multiple Choice

CASE 13.2
Three brothers are arrested over a seven-year period for three different crimes. The oldest brother, James, was arrested for second-degree murder and was sentenced to twenty years in prison. John, the second brother, was arrested for drug possession and was sentenced to thirteen months in prison. Jason, the youngest, was arrested for grand larceny and is currently serving four to seven years in prison. Given this information, answer the following questions.
-James would most likely serve his time in a:

• A)Minimum-security prison.
• B)Medium-security prison.
• C)Maximum-security prison.
• D)Super-maximum-security prison.

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Definitions:

Equity Multiplier

A ratio of financial leverage which quantifies the fraction of a company's assets funded by the equity of its shareholders.

Net Profit Margin

A financial ratio that shows the percentage of net income to revenue, indicating the efficiency at which a company converts sales into net profit.

Gross Margin

The difference between the sales revenue and the cost of goods sold, indicating the profitability of a company's core business activities.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT).