A Problem Withproviding Flexibility in Benefit Choice Is That_____

question 8

Multiple Choice

A problem withproviding flexibility in benefit choice is that_____.

• A) it does not cover higher-risk employees
• B) it increases the risk of adverse selection by employees
• C) it is typically discriminatory in nature
• D) it increases attrition rates

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Definitions:

Cash Break-even

Cash break-even is the point at which a business generates just enough revenue to cover its cash outflows, without making a profit or loss.

Financial Break-even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, decay, or decline in value.

Contribution Margin

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.