A reason workers tend to receive fewer promotions than in the past is that: most firms now believe hiring people outside the organization is a better way to fill management positions because it brings in new blood. very few of today's supervisors and lower-level managers have the qualifications needed to move into higher management positions. the movement toward flatter organizational structures provides fewer opportunities to move upward. firms have found that promoting employees can create jealousy and resentment among the workers who are not promoted.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%