You Have Been Asked to Provide Some Element of Rationale

question 30

Multiple Choice

You have been asked to provide some element of rationale why some companies using a human relations strategy sometimes attempt to change to a more classical framework. Which of the following would best describe the most important issue associated with your explanation?

• A) It is simply very hard on management to pursue a human relations strategy.
• B) There is pressure from owners to increase profitability.
• C) Companies fail to react fast enough to changes in the environment.
• D) Greater worker mobility makes a human relations strategy obsolete.

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Definitions:

Loss on Sale

This refers to the situation where the sale price of an asset is less than its book value, resulting in a financial loss for the entity.

Equity Method

An accounting technique used when an investor holds significant influence over, but not majority ownership of, another company, incorporating the investor's share of the profits and losses.

Equity Method

The equity method is a type of accounting used for investments, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net assets of the investee.