Which of the Following Is Not an Effective Way to Protect

question 15

Multiple Choice

Which of the following is not an effective way to protect yourself from a wrongful termination suit brought by an employee whom you have fired?

• A) I can hire a lawyer to protect me from lawsuits.
• B) I can conduct regular employee-performance reviews.
• C) I can use performance-improvement or development plans to give the employee an opportunity to fix aspects of performance that are subpar.
• D) I can keep documentation of all my reasons for firing the employee to prove that he/she violated company ethics or was not performing his/her duties.
• E) I would not editorialize or speculate about the employee.

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Definitions:

Opportunity Costs

The price paid by not choosing the second-best option available during decision-making.

Foregone Resource

The benefits or income lost when one option is chosen over another, essentially another term for opportunity cost but often used in the context of tangible resources.

Cash Flow Estimation

The process of predicting the amount of money that will move in and out of a business in a future period.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.