Omega IncWas Thinking of Relocating Their Steel Manufacturing Operations to Alessio

question 60

Multiple Choice

Omega Inc.was thinking of relocating their steel manufacturing operations to Alessio.Relocating to Alessio means cheaper labor,raw materials,and better weather.However,the company changed its decision since it would have a negative impact on a large number of its employees.In this case,Omega's move to Alessio did not pass the _____.

• A)fairness test
• B)metric test
• C)long-term consequences test
• D)public knowledge test

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Definitions:

Face Value

The nominal or dollar value printed on a security or a financial instrument, such as a bond or stock, representing its legal value.

Maturity Value

The amount to be received at the maturity date of an investment, typically the principal plus interest.

Note Duration

The term or length of time until a promissory note, bond, or other financial instrument reaches its maturity date.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, typically expressed on an annual basis.