Suggested Approaches to Improving the Financial Security of Employees in the Case

question 39

Multiple Choice

Suggested approaches to improving the financial security of employees in the case of the collapse of their employer include:

• A) Promoting compulsory, private self-insurance schemes for individuals so that they will be covered in the case of company failure.
• B) Providing stronger government funding for unions so they can act as a financial support for members made unemployed by corporate failure.
• C) Creating a sub-committee of Cabinet to oversee the raising of funds and investment of these funds to provide a special needs fund for employees severely financially affected by the collapse of their employer.
• D) The establishment of central funds, either in the form of government-backed compulsory insurance or a trust to which it is compulsory for employers to contribute, from which employee entitlements could be paid in the case of corporate collapse.
• E) None of the given answers.

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Definitions:

Cost Data

Information related to the expenses incurred in the production of goods or the provision of services.

Identical Firms

Identical firms are businesses within the same industry that produce and sell products or services that are very similar in nature, leading to direct competition.

Demand Curve

A graph that illustrates the connection between the cost of a product and the amount of the product buyers are ready to buy at various costs.

Marginal Revenue

The increase in total revenue that results from selling one additional unit of a product.