If You're Asked to Submit to Alcohol Testing and Drug

question 94

Multiple Choice

If you're asked to submit to alcohol testing and drug screening during the hiring process,remember that

• A)only government agencies can require those tests.
• B)a majority of companies require them of all applicants.
• C)what you do in your free time will not affect your on-the-job performance.
• D)the Supreme Court has determined that they violate workplace privacy laws.
• E)companies with fewer than 500 employees cannot legally perform them.

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Definitions:

Debt-Equity Ratio

A metric for evaluating a firm's financial leverage, determined by dividing its total debts by the equity held by shareholders.

Cost of Debt

The actual rate a firm incurs on its overall debt, representing the cost of acquiring funds.

Equity Risk

The risk of loss associated with fluctuations in the price of equities or stocks.

M&M Proposition I

A principle in corporate finance that asserts the market value of a firm is unaffected by the capital structure, assuming no taxes and perfect markets.