Even If Your College Degree Is Irrelevant to an Employer's

question 89

Multiple Choice

Even if your college degree is irrelevant to an employer's needs,your high GPA might still get you the job because

• A) the firm is not a profit maximizer.
• B) your GPA screens some of your private information.
• C) your GPA sends a signal about your quality as a worker.
• D) the firm will most likely make an adverse selection.
• E) the high GPA eliminates the possibility of moral hazard.

Assess company performance through margins such as operating profit margin and gross profit margin.

Calculate and interpret financial ratios such as times interest earned ratio, equity multiplier, cash coverage ratio, return on equity, profit margin, quick ratio, current ratio, net working capital turnover, and price earnings growth ratio.

Apply the Du Pont Identity Method for analyzing the components affecting a firm's return on equity.

Understand the relationship between financial performance measures such as debt-equity ratio, return on assets, and return on equity.

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Definitions:

Principal

In finance, refers to the original sum of money borrowed in a loan, or invested, separate from interest or profit.

Corresponding Right

A right that matches or is equivalent to an obligation, duty, or entitlement in a jurisprudential context.

Indemnify

To compensate for harm or loss sustained, or to protect someone by promising to compensate for the damage or loss they might incur.

Tort Claim

A legal claim arising from an act or omission that causes harm or injury, which is not derived from a contract breach.