XYZ Company Has Been Hit Hard by the Latest Recession

question 81

Multiple Choice

XYZ Company has been hit hard by the latest recession. The president has ordered a 10% reduction in the workforce across the board. This decision might be justified as ethical using the __________ approach to moral reasoning.

• A) utilitarian
• B) individual
• C) moral rights
• D) justice

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Definitions:

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.