James Greer Is a 57-Year-Old Accountant Who Has Worked for the Same

question 97

Multiple Choice

James Greer is a 57-year-old accountant who has worked for the same large firm for almost 30 years. His yearly evaluations always show high performance. Despite this, his young new boss recently called him into his office and let him know that his last day of work will be at the end of the month, explaining that he preferred to work with employees closer to his own age. James noted that the firm posted increased profits this past year and viewed his boss's actions as unfair, so he decided to make an appointment with the HR director. What would the HR director most likely tell James?

• A) The new boss was out of line because under the Fair Labour Standards Act any age-related layoffs require that the employees be given at least six months notice.
• B) The new boss should probably have used "softer words" when letting him know, but the Equal Opportunity Employment Commission almost always supports the employer's right to hire and fire whomever they want.
• C) The new boss was out of line because federal law prevents employers from discriminating against workers because of age on the basis of hiring, firing, compensation, and other conditions of employment.
• D) The new boss has every right to hire whomever he wants to work in his department, but that federal law requires the firm to offer James employment in other departments if any are available for which he is qualified.

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Definitions:

Stand-alone Principle

An approach to evaluating investment decisions without considering any potential impacts from external projects or operations.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not affect future investment decisions.

Depreciation Cost

The allocated portion of an asset's initial cost over its useful life, recognized as an expense on financial statements.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating short-term financial health and operational efficiency.