If a Firm Was Owned by Its Employees

question 5

Multiple Choice

If a firm was owned by its employees,

• A) there is a higher probability that wage reductions would outweigh layoffs.
• B) those in charge would not act any differently than regular owners; there would still be layoffs.
• C) those not in charge would remain risk neutral.
• D) wage reductions would be lower than if the firm was run for profit.

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Definitions:

Internal Email System

A digital communication network used within an organization to send and receive messages and documents among employees.

Anonymous Employee Survey

A method used by organizations to collect candid feedback from employees about their workplace experiences, concerns, and suggestions while protecting their identities.

Face-To-Face Interviews

A method of data collection or evaluation where conversations are conducted in person, allowing for in-depth discussion and feedback.

Information Richness

The degree to which information contains cues and feedback that enrich understanding and reduce ambiguity.