Which of the Following Is Correct with Regard to Industry

question 208

Multiple Choice

Which of the following is correct with regard to industry productivity?

• A) Productivity does not vary much across different industries.
• B) Productivity is not important to labour unions when they are negotiating a new collective agreement, but it is important to investors.
• C) Activities like web surfing, social networking, and water cooler conversations inhibit productivity.
• D) Increased productivity allows companies to pay workers higher wages without raising prices to consumers.
• E) All of these statements are correct.

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Definitions:

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes income not recognized in the profit and loss account, such as unrealized gains on securities and foreign exchange differences.

Shareholders' Equity

The residual interest in the assets of an enterprise after deducting liabilities, representing the ownership interest of shareholders.

Retained Earnings

The portion of net income that is kept by the company rather than distributed to its shareholders as dividends.

Contributed Surplus

The value of anything of value that is given to a company in exchange for shares, above the par value of the shares.