Which of the Following Actions Is Necessary When a Company

question 102

Multiple Choice

Which of the following actions is necessary when a company is hiring and firing at the same time?

• A)Having honest and frequent communication with layoff survivors.
• B)Providing more money to layoff survivors.
• C)Providing more salaries to layoff survivors.
• D)Providing higher salaries to new employees.
• E)Providing better jobs for new employees.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated as the difference between its total revenue and operating expenses, excluding taxes and interest.

Return On Investment

A financial ratio used to calculate the profitability of an investment, comparing the gain from an investment relative to its cost.

Residual Income

The income that remains after subtracting from the net operating income the cost of capital charged for utilizing the capital in generating the net operating income.

Minimum Required Rate

The lowest acceptable rate of return on an investment, often used in the context of capital budgeting.