Union Leaders Argue That in Comparison to Ability as a Criterion

question 27

Multiple Choice

Union leaders argue that in comparison to ability as a criterion for promotion, seniority as a criterion has the advantage of:

• A) General public support.
• B) Arbitration preference.
• C) Being easily and objectively measured.
• D) Being more motivational to employees.

Identify sunk costs and their irrelevance to future financial decisions.

Calculate the financial impact of operational and staffing changes on project cash flows.

Assess the benefits of depreciation tax shields on a project's cash flows.

Understand the relevance of incremental cash flows in capital budgeting.

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Definitions:

Interest Rate

Interest rate is the percentage of the principal amount charged by lenders for the use of their money or paid by banks for keeping money in an account.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, specifically the ratio of its total liabilities to its total assets.

Business Risk

The exposure to uncertainty and potential loss in a company’s operations due to factors like fluctuations in revenue or expenses.

Financial Risk

The possibility of losing money on an investment or business venture, often due to changes in the financial markets or failure to meet debt obligations.