Suppose a Law Firm Negotiates a Very Low Price for Each

question 18

Multiple Choice

Suppose a law firm negotiates a very low price for each of its 1000 employees to be members at the athletic club that is located next to the law firm. Which of the following is not likely to be true?

• A) The law firm can pay its workers less than a comparable law firm that does not offer the gym benefit.
• B) The firm can likely negotiate a lower per person price at the gym than each employee could negotiate alone.
• C) Some employees will take advantage of the gym benefit, while others will not.
• D) In the long run, the law firm will probably attract workers who value the gym benefit the most.
• E) If the typical individual gym membership costs $50 per month, the law firm should expect to save $50,000 per month in wages.

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Definitions:

Older Workers

Individuals in the workforce who are generally considered to be near or beyond the typical age of retirement, facing unique employment challenges and opportunities.

Trust Perceptions

The beliefs or attitudes individuals hold regarding the reliability, integrity, and competence of others or an institution.

Management

The process of dealing with or controlling things or people, often within an organizational setting, including planning, organizing, leading, and controlling.

Benevolence

The desire to do good to others; goodwill; charitableness.