The Common Law Principle Which States That, in the Absence

question 14

Multiple Choice

The common law principle which states that, in the absence of any contract language to the contrary, either the employer or employee may terminate the employment relationship at any time is called ________.

• A) employment-at-will
• B) affirmative action
• C) equal employment opportunity
• D) a consent decree

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Definitions:

Stockholders' Equity

The stake that shareholders have in a company, which is the value left over from the company's assets after paying off all liabilities.

Return On Total Assets

A financial ratio indicating how effectively a company is using its assets to generate earnings.

Total Assets

The aggregate of all monetary values of everything a company owns or controls, with economic value expected to provide a future benefit.

Stockholders' Equity

The amount of assets remaining in a company after all liabilities have been deducted, essentially representing the owners' claim on the company's assets.