Why Must Collective Agreements Be Considered During a Merger

question 13

Multiple Choice

Why must collective agreements be considered during a merger?

• A) To follow the protocols for notification periods for layoffs and terminations.
• B) To help management create an environment of trust, fairness, and equity.
• C) To ensure that employees will continue to work with the same compensation.
• D) To interpret the legalities of downsizing and restructuring.

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Definitions:

Income Before Taxes

Earnings of a company before income tax expense is deducted, indicating its profitability from operations.

Operating Expenses

Costs associated with running a company’s day-to-day operations, such as salaries, rent, and utilities, but not including cost of goods sold.

Cost of Goods Sold

The immediate financial outlays associated with the creation of a company's sold products.

Net Sales

The amount of a company's gross sales minus returns, allowances, and discounts.