Which of the Following Companies Are the Most Likely to Pursue

question 65

Multiple Choice

Which of the following companies are the most likely to pursue a union opposition strategy:

• A) Company A, which has adopted a differentiation approach in the marketplace
• B) Company B, which primarily uses young part-time employees
• C) Company C, which competes in an industry in which most employers are unionized
• D) Company D, which has managers who are indifferent on the matter of unionization
• E) Company A and Company B

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Definitions:

Fixed Expense

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Margin of Safety

The difference between actual sales and the break-even point, indicating the risk level of not covering fixed costs.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.

Sales Percentage

A metric that shows what portion of a company's total sales is made up of a particular product or service.