Why Might an IR Institutionalist Favour Seniority as a Criterion

question 45

Multiple Choice

Why might an IR institutionalist favour seniority as a criterion for personnel decisions such as promotions and layoffs?

• A)because it eliminates the possibility of arbitrary management actions,thereby increasing workers' morale and productivity
• B)because this approach is cheaper
• C)because it ensures that the best person is selected to do the job
• D)because IR institutionalists don't trust personnel departments
• E)because management generally favours this approach

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Definitions:

Retains Earnings

Retains Earnings are the portion of net income that is not distributed to shareholders as dividends, but rather retained by the company for reinvestment or to pay off debt.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without needing to increase its financial leverage.

Ratios

Metrics derived from a financial analysis that provide insights into a company's performance, liquidity, profitability, and solvency.

Constant

A value that does not change and remains fixed under specified conditions.