Which of the Following Is True of Employment and Financial

question 15

Multiple Choice

Which of the following is true of employment and financial distress?

• A)The cyclical nature of the size of a firm's labour force is inversely related to its financial leverage.
• B)Firms with lower debt are more likely to maintain a smaller workforce through a recession than are firms with higher debt ratios.
• C)Highly levered firms have a greater tendency to lay off workers.
• D)A firm with lower debt obligations may prefer to maintain less employment when the financial conditions are bad.