Salmagundi Co

question 49

Multiple Choice

Salmagundi Co. decides to eliminate staff to increase its profits. There is no labour union in this workplace. The next day the president tells Patricia Ravel that she is fired and must leave immediately. Which of the following is TRUE?

• A)The company cannot fire her just to increase profits.
• B)The company cannot ask her to leave immediately but must let her stay to the end of the normal business day.
• C)The company can fire her for the reason given but must pay her an amount based on reasonable notice period.
• D)The company can fire her for the reason given but only pay an amount in lieu of notice based on a formula set out in the Employment Standards or Labour Act of the province.
• E)The company can fire her but should come up with a different reason.

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Definitions:

Perfectly Elastic Demand

Perfectly elastic demand is a market scenario where the demand for a product can drastically change (increase or decrease) at the slightest change in price, essentially to infinity.

Patents

Legal documents granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Innovation Incentives

Mechanisms or policies designed to encourage the development and implementation of new ideas, products, or methodologies.

Monopoly Power

The degree of control a company has over a market, enabling it to set prices or exclude competition.