Darryl Graduated from College with Outstanding Grades

question 4

Multiple Choice

Darryl graduated from college with outstanding grades.However,he obtained his outstanding grades by cheating on every final exam with help from his best friend.Nevertheless,he gets a job with a top accounting firm in Boston.The fact that he is hired illustrates a failure of _____

• A)the efficiency wage theory.
• B)signaling and screening.
• C)the marginal productivity theory.
• D)the supply and demand theory.
• E)outsourcing and specialization.

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Definitions:

Operating Expenses

Costs associated with running a business's day-to-day activities, excluding the cost of goods sold, such as rent, utilities, and payroll.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its most liquid assets.

Inventory Turnover

This is a ratio showing how many times a company's inventory is sold and replaced over a period, usually a year, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.