When Fletcher Lost His Job as a Result of a Downsizing

question 37

Multiple Choice

When Fletcher lost his job as a result of a downsizing, his health coverage was discontinued even though he was willing to pay for it. Which of the following Acts can Fletcher cite in his efforts to have his health coverage benefits restored?

• A) Consolidated Omnibus Budget Reconciliation Act (COBRA)
• B) Health Insurance Portability and Accountability Act (HIPAA)
• C) Occupational Safety and Health Act (OSHA)
• D) Patient Protection and Affordable Care Act

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Definitions:

Margin of Safety

Margin of Safety is the difference between actual or expected sales and the break-even point, expressed in terms of units, dollars, or percentage, indicating how much sales can fall before a business incurs a loss.

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs and profits.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance premiums.

Break-even Point

The point at which total income matches total outgoings, leading to neither a profit nor a loss.