Little Rascals Child Care Center Has Decided to Change Its

question 91

Multiple Choice

Little Rascals Child Care Center has decided to change its hours from 6 a.m. to 6 p.m. to 7 a.m. to 5 p.m. beginning at the start of the next month. The owner, Wanda, feels that the change is needed because only a few families were coming in before 7 a.m., and, therefore, it was not cost-effective to be open that early. In making her decision, was Wanda being sensitive to the families who brought their children to the center?

• A) Yes, since only a few would be affected, she could assume it would be fine.
• B) Yes, because the employees are now able to spend more time their own families.
• C) Yes, because most did not need her services that early.
• D) No, because the families would not understand she was saving money and would not pass the savings onto them.
• E) No, she did not consider how the people affected may feel about the change.

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Definitions:

Tax Expense

The sum of the current tax and deferred tax charged to an entity's profit or loss for the period.

Preference Dividends

Dividends that are paid to holders of preferred shares, typically at a fixed rate, before any dividends are paid to common shareholders.

EPS

Earnings Per Share, a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Directors' Declaration

A statement by the company's directors asserting the accuracy of the financial statements.