The Framework of Fairness Agreement Between Magna and the CAW

question 53

Multiple Choice

The Framework of Fairness agreement between Magna and the CAW provides that:

• A) If the parties cannot negotiate a collective agreement the terms of the agreement will be determined by referring mediation.
• B) If the parties cannot negotiate a collective agreement the terms of the agreement will be determined by referring to arbitration.
• C) There will be no strike or lockout.
• D) The union can call a strike without having a strike vote.
• E) b and c

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Definitions:

Cost of Equity

The return a company theoretically pays to its equity investors as a reward for taking on the risk of investing in the company.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

After Tax Cost

The actual cost of an investment or purchase after accounting for the effects of taxes on the price.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.