According to the New Social Contract

question 1

Multiple Choice

According to the new social contract:

• A) The employer is obligated to provide long-term job security.
• B) Companies try to attract workers by giving them interesting and challenging work.
• C) Job security is based on seniority, but salaries may be lowered for poor performance.
• D) The employer is without any responsibilities toward employees.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT) is a company's profit from normal operations, excluding non-operating income and expenses.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the net gain or loss on the investment relative to the cost of the investment.

Investment Center

A division or unit within an organization that is directly responsible for generating its own revenue as well as controlling its costs, and therefore, its profits.

Authority

The ability or entitlement to dictate actions, decide on matters, and demand adherence.