If a Firm Was Owned by Its Employees

question 5

Multiple Choice

If a firm was owned by its employees,

• A) there is a higher probability that wage reductions would outweigh layoffs.
• B) those in charge would not act any differently than regular owners; there would still be layoffs.
• C) those not in charge would remain risk neutral.
• D) wage reductions would be lower than if the firm was run for profit.

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Definitions:

Reflexes

Automatic, involuntary responses to specific stimuli.

Cardinal Trait

A dominant personality characteristic that defines and shapes all of a person’s behaviors, thoughts, and attitudes, influencing their entire life.

Ruling Passion

A dominant inner force or motivation that shapes an individual's actions and life path, often driving their decisions and priorities.

Traits

Enduring characteristics that describe an individual's behavior across various situations.