Underemployment Occurs When

question 134

Multiple Choice

Underemployment occurs when:

• A)​a firm hires fewer than the required number of workers, to save costs.
• B)​a firm hires workers who do not possess the required skills that the job demands.
• C)​a worker is over qualified and possesses more skills than what his job demands.
• D)​a firm hires more than the required number of workers.

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Definitions:

NWC to Total Assets

A financial ratio that measures the net working capital (current assets minus current liabilities) in relation to the total assets of a company.

Interval Measure

A type of data measurement that includes order and a fixed measurement scale, allowing for the calculation of meaningful differences between data points.

Interval Measure

A statistical measure used to estimate the uncertainty of a data set by defining a range within which the values of the data set likely fall.

Short-term Solvency

The ability of a company to meet its short-term financial liabilities and obligations.