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A Firm Has a Formal, Written Guide Regarding Its Zero-Tolerance

question 101

Multiple Choice

A firm has a formal, written guide regarding its zero-tolerance attitude towards sexual harassment and the consequences of its violation. By definition, this is a _____ of the firm.


Definitions:

Times Interest

This refers to the times interest earned (TIE) ratio, a financial metric used to measure a company's ability to meet its debt obligations with its earnings before interest and taxes (EBIT).

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that is financed by stockholders' equity.

Acid-test Ratio

A financial metric that evaluates a company's ability to pay off short-term liabilities with its most liquid assets, excluding inventory.

Debt-to-equity Ratio

An indicator showing the comparative levels of shareholders' equity and debt utilized in the financing of a company's assets.

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