Answer: Solvency
Explanation:
Long-term creditors want to ensure that a company will pay its outstanding debts. Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency is essential to staying in business as it demonstrates a company's ability to continue operations into the foreseeable future. Periodically checking your business’s solvency ratios can help ensure your company’s fiscal health. In addition to helping businesses evaluate their capital structures, solvency ratios may assist owners in determining whether internal and external equities must be redistributed.
The correct answer to this open question is the following.
Although the question provides no context or references, we can say that if the top-level management team has accepted your recommendation their effectiveness can be evaluated three months after implementation in the following way.
The recommendation needs to establish some goals that have to be accomplished in the short, medium, and long-range. After the first three months, you establish your exéctations and you should have included your KPIs or Key Performance Indicators in order to do the proper evaluation and knowing if the recommendations were valid or attainable. Lack of goals or KPIs to evaluate the recommendation would end up complicating the evaluation process.
<u>Explanation:</u>
Note, the term diminishing marginal utility refers to an economic principle that states that the more unit of a particular commodity or service we consume, the more the satisfaction (utility) derived out of the consumption reduces or diminishes.
For instance, if I watched movies produced by a particular entertainment company for several days (eg Disney Studios), I may become dissatisfied using this particular entertainment provider and may decide to try another service (Netflix).
Another instance could occur after exercising, I'm given 3 bottles of coke, after taking my first bottle, the amount of utility I derive would reduce until I get to the third bottle, at this point I've reached my peak.
The law of diminishing marginal utility failed for someone I know who had used the same type of toothpaste and brushed her teeth at least once a day for a period of over 10 years.
Answer:
The correct answer is b. an implied contract.
Explanation:
The theory of implicit contracts refers to the fact that the relationship between employers and workers is governed, in addition to the "explicit" legal contracts signed between the two, by a multitude of tacit commitments established during the understanding between the two parties. Implied contracts are unwritten agreements and informal rules that companies have with their workers, and that, in many cases, are justified in the commitment to wage stability. In this theory, companies set wages within a broad and long-term strategy or stability of the employment relationship.
