If a Firm Invests a Lot in New Employees, It

question 44

Multiple Choice

If a firm invests a lot in new employees, it is likely to

• A)forward load compensation.
• B)pay all the costs of the new training.
• C)backload compensation.
• D)none of these choices.

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Definitions:

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.

Parent Company

An entity that owns enough voting stock in another corporation to control its management and operations.

Subsidiary Company

A company controlled by another company, referred to as the parent company, through ownership of more than 50% of its voting stock.

Marketable Securities

Financial instruments that are easily convertible into cash due to their high liquidity and short maturity period.