Suppose That Due to a Shortage of Parts from Its

question 215

Multiple Choice

Suppose that due to a shortage of parts from its Asian suppliers, Apple experienced a 25% drop in its sales. Even though its sales decreased, Apple did not cut the wages of its non-unionized workers. This is an example of

• A) an implicit or social contract not to cut wages.
• B) employment-at-will.
• C) poor management.
• D) an explicit contract not to cut wages.

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Definitions:

Expense Accounts

Accounts used to track the costs incurred in a business's operational activities, not directly tied to the production of goods or services.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly associated with the production of goods or services.

Merchandising

Merchandising involves purchasing, displaying, and selling products to consumers, with strategies that aim to boost sales and profitability.

Service Enterprises

Businesses that provide intangible products or services to customers rather than tangible goods.