As Reported in the New York Times in November,2008,Ron Gettelfinger,President

question 253

Multiple Choice

As reported in the New York Times in November,2008,Ron Gettelfinger,President of the U. A.W.United Auto Workers Union) testified with auto executives in front of the U.S.Congress,saying,"The U.A.W.can't be the low-hanging fruit...While we're at the table,we're asking that others come in and sacrifice as well." Mr.Gettelfinger was referring to the several ___________ that the autoworkers' union had agreed to over the past few years in order to save jobs and particularly keep retirement benefits intact.

• A)primary boycotts
• B)givebacks
• C)herding tactics
• D)legal mandates

---

Definitions:

Capital Rationing

The process of selecting the most profitable projects to invest in when funds are limited.

Capital Budgeting

Capital budgeting involves the process of deciding which long-term investments or projects a company should undertake, based on potential profitability and risk.

Cost of Capital

The minimum earnings rate required by a company on its investment endeavors to maintain market valuation and attract funding.

Budgetary Limit

The maximum amount of money allocated for a specific purpose in a budget.