The Labor-Management Relations Act of 1947 (Also Known as the Taft-Hartley

question 19

Multiple Choice

The Labor-Management Relations Act of 1947 (also known as the Taft-Hartley Act) was significant because it

• A) curtailed union power by permitting states to pass right-to-work laws.
• B) granted firms the right to break unions.
• C) outlawed yellow-dog contracts.
• D) created the National Labor Relations Board.
• E) granted union rank and file the right to decertify its leadership via election.

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Reported Net Income

The total profit or loss of a company after all expenses and taxes have been subtracted from total revenue, as shown on the income statement.

Direct Method

An approach to preparing the cash flow statement where actual cash inflows and outflows from operational activities are listed.