If There Are Costs Associated with Employee Turnover,and to Reduce

question 2

Multiple Choice

If there are costs associated with employee turnover,and to reduce these costs,a firm increases the wage it pays its employees,then

• A) the firm's profits must decrease.
• B) the firm's profits must increase if turnover costs fall.
• C) the firm's profits must increase if the turnover rate falls by three percent or more.
• D) the firm's profits could increase or decrease, depending on the amount in the wage increase and the change in the turnover rate.

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Definitions:

Restrictive Covenant

In property law, a condition imposed by the seller as to what the purchaser can use the land for; in employment law, a commitment not to work in a certain geographical area for a designated period of time.

Easement

The right of a person other than the owner to use a portion of private property.

Prescription

A health care professional's formal instruction authorizing a patient to be provided a medicine or treatment.

Strata Regulations

Laws or rules governing strata properties, which are typically multi-unit housing complexes with individual ownership of units and shared ownership of common areas.