Leandro Works in a Union Shop, but He Has Refused

question 19

Multiple Choice

Leandro works in a union shop, but he has refused to join the union.He pays the union a sum of money equal to union fees and dues as a condition of continuing employment.These monies are used exclusively for collective bargaining purposes.Leandro is working in a(n)

• A)closed shop.
• B)union shop.
• C)agency shop.
• D)open shop.
• E)checked shop.

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Definitions:

Revolving Credit Agreement

A financial arrangement allowing a borrower to withdraw, repay, and reborrow funds up to a specified credit limit.

Legal Obligation

A duty, established by law, contract, or agreement, which requires an entity or individual to perform or refrain from performing a certain action.

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear, typically used for tax and accounting purposes.

Noncash Charge

An expense reported in the income statement of a company that does not involve actual cash flow, such as depreciation or amortization.