Due to Changing Economic Conditions Unions Are

question 57

Multiple Choice

Due to changing economic conditions unions are:

• A) offering fixed salaries to union members.
• B) paying a portion of union member dues.
• C) using more variable pay plans in their contracts.
• D) requiring mandatory overtime as part of their contracts.
• E) decreasing their involvement in political campaigns to save costs.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the scale of fixed versus variable costs.

Units Sold

The quantity of an item sold by a company in a specific period.

Hard Rationing

A situation where companies cannot obtain funds for investment, even if they are willing to pay higher interest rates, due to external factors.

Net Present Value

A calculation that determines the current value of a series of future cash flows, discounted back to their present value at a specific discount rate.