Which of the Following Is True of Employment and Financial

Which of the following is true of employment and financial distress?

A) The cyclical nature of the size of a firm's labour force is inversely related to its financial leverage.
B) Firms with lower debt are more likely to maintain a smaller workforce through a recession than are firms with higher debt ratios.
C) Highly levered firms have a greater tendency to lay off workers.
D) A firm with lower debt obligations may prefer to maintain less employment when the financial conditions are bad.