You Are the HR Manager for Your Company

question 3

Multiple Choice

You are the HR Manager for your company. One of your employees has been actively involved in demonstrations at City Hall, protesting the city's refusal to adopt any environmentally-friendly ordinances or practices. While at these protests, he is often wearing a company T-shirt, and you are concerned that news reports of the demonstrations will lead people to conclude that your company is protesting the city's environmental policies, something which your Board of Directors has not authorized. You should:

• A)give the employee a "warning," the firs step in your employee handbook's progressive discipline process, warning him that he must stop protesting
• B)tell the employee that you do not approve of his conduct, and that it will be taken into account when he comes up for a raise or promotion
• C)ask the employee to wear some other shirt while protesting, so that people don't think your company is also protesting
• D)terminate the employee

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Definitions:

Parent's Share

The proportion of equity held in a subsidiary by the parent company, often representing controlling interest.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Consolidation Approach

A method in accounting where the financial statements of a parent company and its subsidiaries are presented as one.

Parent-Company Method

A method of accounting wherein investments in subsidiaries are shown at cost or at fair value within the parent company's financial statements.