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30 Aug 2021, 07:48
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
83% (01:37) correct
17%
(01:48)
wrong
based on 270
sessions
History
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Time
Result
Not Attempted Yet
The Hale Burton Oil Pipeline Construction Corporation has had a bad quarter. Rather than lay off workers to cut costs, however, it will simply defer salaries for 30 days and hold them in a mutual fund to pick up interest to cover expenses. By doing this the company and its employees will avoid the negative consequences often associated with earning shortfalls.
Which of the following, if true, is the best criticism of the corporation, Aos plan?
A. Employees will not be able to control which mutual funds the salaries will be diverted into.
B. The corporation cannot save money by cutting staff because it is already understaffed.
C. Some employees will need to borrow money to hold them over until the 30 days are up and they will consequently have 30 days of interest on these loans.
D. Some employees will not be affected by the rollover because they have savings.
E. The corporation's budget was cut by 15% last year.
Which of the following, if true, is the best criticism of the corporation, Aos plan?
A. Employees will not be able to control which mutual funds the salaries will be diverted into.
B. The corporation cannot save money by cutting staff because it is already understaffed.
C. Some employees will need to borrow money to hold them over until the 30 days are up and they will consequently have 30 days of interest on these loans.
D. Some employees will not be affected by the rollover because they have savings.
E. The corporation's budget was cut by 15% last year.
30 Aug 2021, 21:52
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C is the correct answer as we dont know what all employees will be able to aford not javing salary for 30 days. Considering many may have prior loan obligations and other costs.
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AkashAgarwal1
Joined: 27 Oct 2020
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Schools: HEC '22 IIMA PGPX "21 Kellogg '21
31 Aug 2021, 17:32
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C is the correct answer as we don't know how many employees will have savings or they have to borrow money to afford expenses.
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Posted from my mobile device
