What Would Happen If,as a Business Owner,Toderick Forced His Employees

question 12

Multiple Choice

What would happen if,as a business owner,Toderick forced his employees to join an HMO?

• A) Medical care costs would likely be higher than if Toderick's employees could see any doctor and receive any test they wanted because unnecessary care would be fully covered.
• B) Medical care costs would likely be lower than if Toderick's employees could see any doctor and receive any test they wanted because the amount of unnecessary care would be reduced.
• C) Medical care costs would likely be unaffected by whether employees join an HMO or not.
• D) Medical care costs would likely be lower because the less healthy would be encouraged to receive care.
• E) Medical care costs would likely be lower because the healthy would be discouraged from receiving care.

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Definitions:

Rate Of Return

The financial gain or loss achieved on an investment during a predetermined period, shown as a percentage of the investment's initial outlay.

Stock Price

The cost of purchasing a share of a company's stock. It is determined by the supply and demand for the stock in the market.

Dividends

Dividends issued by a firm to its investors, typically funded by the company’s profit.

Capital Gains Yield

The price appreciation component of the total return on an investment, expressed as a percentage of the initial investment cost.