An Employee Whose Contract for Service Includes an Entitlement to 2

question 76

Multiple Choice

An employee whose contract for service includes an entitlement to 2 weeks' non-cumulative,vesting sick leave tenders his/her resignation to take effect exactly halfway through their fifth year of employment.What is the employee's sick leave entitlement,in weeks,that will be paid out on his/her departure assuming that no sick leave has been used?

• A) nine weeks
• B) zero
• C) ten weeks
• D) one week

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Definitions:

Leverage

The use of borrowed capital or debt to increase the potential return of an investment.

Debt Financing

Raising capital through the sale of bonds, bills, or notes to individuals or institutions, which must be repaid over time with interest.

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest payments.

Debt Financing

Raising capital through the borrowing of funds to be paid back at a later date, typically with interest.