Company a Is Reducing Production Because of a Decrease in Demand

question 18

Multiple Choice

Company A is reducing production because of a decrease in demand for its product. When the company reduces the size of its unionized workforce, which of the following is correct:

• A) the union must be given reasonable notice
• B) employees must be given reasonable notice
• C) employees must be given the notice provided for in the collective agreement
• D) younger employees must be laid off first
• E) employees cannot be terminated unless the union consents

---

Definitions:

Chronological Order

The arrangement of events, dates, or actions in the order that they occurred or will occur, from earliest to latest.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer sums from one account to another.

Transaction Analysis

This is the process of reviewing and analyzing a company's transactions to determine their effects on its financial statements.

IFRS

International Financial Reporting Standards are a set of accounting rules and standards that determine how transactions and other accounting events should be reported in financial statements globally.