Which of the Following Statements Is the Most Specific Way

question 44

Multiple Choice

Which of the following statements is the most specific way for a company to convey that it needs to reduce its current workforce by half?

• A) The company will have to lay off a few employees.
• B) The company will have to terminate a small percentage of its employees.
• C) The company will have to terminate the majority of its employees.
• D) The company will have to lay off about half of its employees.
• E) The company will have to terminate 50 percent of its employees.

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Definitions:

Amortization Schedule

A table detailing each periodic payment on an amortizing loan (typically a mortgage), as well as how much of each payment is interest versus principal and the balance remaining after each payment.

Compounded Semi-annually

Interest calculation method where interest is added to the principal sum of a loan or deposit twice a year, resulting in interest earning interest.

Amortization Schedule

An amortization schedule is a table detailing each periodic payment on an amortizing loan, including amounts going towards principal and interest over the life of the loan.

Total Debt Service Ratio

A financial ratio that compares an individual's total debt payments to their gross income, used by lenders to assess borrowing capacity.