The board of directors of August Inc., a company that provides legal services, has been debating over whether to provide its 99 full-time employees with health insurance. The managers of the firm, however, are considering dropping employee health insurance as a benefit. Which of the following statements strengthens the managers' consideration?
A)The fine that August Inc. would face would be cheaper than the current premiums for health insurance.
B)The Affordable Health Care Act requires firms with over 50 employees to provide health insurance for their workers, or face fines.
C)The federal Affordable Health Care Act, enacted in 2009, mandates that health insurers cover even those with preexisting conditions.
D)The revised policy would help August Inc. erect entry barriers in its industry and change the nature of rivalry in the industry with most of the small firms.

Question

Quizplus · Accepted Answer

Statement A strengthens the managers' consideration by suggesting a financial benefit to dropping employee health insurance, as the fine would be cheaper than the current premiums.

The Board of Directors of August Inc