If a Company Gets Concessions from Labor in Union Negotiations

question 13

Multiple Choice

If a company gets concessions from labor in union negotiations, one would expect a(n) _____ in yields on its bonds due to an increase in

• A) increase; default risk.
• B) decrease; default risk.
• C) increase; liquidity.
• D) decrease; liquidity.

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Definitions:

Saudi Arabian Riyals

The official currency of Saudi Arabia, used for all financial transactions within the country.

U.S. Dollars

The official currency of the United States, commonly represented by the symbol $.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Total Liabilities

The sum of all debts and financial obligations a company owes to outside parties.