The Management of an Organization Is Less Able to Afford

question 53

Multiple Choice

The management of an organization is less able to afford a strike when

• A)the product is nonperishable.
• B)the organization is capital intensive.
• C)replacement workers are scarce.
• D)the company has more than one production unit.
• E)the demand for its product is strong.

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Definitions:

Bond Interest

The periodic payment made to bond investors, representing the interest earned on the bond's face value.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or the repayment of a loan over time through scheduled payments.

Bond Discount

The gap between what a bond is worth (its face value) and the lower amount it is sold for in the market.

Amortization Methods

Various techniques used to gradually write off the initial cost of an intangible asset over a period.