Smith Is an Employee of ABC Company and Wants to Persuade

question 38

Multiple Choice

Smith is an employee of ABC Company and wants to persuade the other employees to join a union and become certified, because the wages paid by ABC are less than those that would be paid in a union plant. ABC Company does not want a union. Which of the following is ABC permitted to do?

• A) ABC can fire Smith.
• B) ABC can increase the wages paid to the employees, thus eliminating the major reason for having the union.
• C) ABC can tell the employees that it cannot afford to pay union wages and, if forced to, will go out of business, as long as that statement is true and not threatening or intimidating.
• D) ABC can form its own company organization for workers and have it certified.
• E) ABC can transfer Smith to another plant.

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Definitions:

Periodic Inventory System

An inventory system under which the company does not keep detailed inventory records throughout the accounting period but determines the cost of goods sold only at the end of an accounting period.

Auto Manufacturer

A company that specializes in producing and selling automobiles.

Various Stages Of Production

Different phases in the manufacturing process through which a product goes, from raw materials to the final product.

Work In Process

This refers to the portion of inventory that is currently in the process of being produced but is not yet completed.