Which of the Following Is True About Successor Organizations

question 11

Multiple Choice

Which of the following is true about successor organizations?

• A) Where ownership changes but operations continue unchanged,the new owner must honor the existing contract.
• B) A firm that merges with another firm assumes existing contractual obligations.
• C) Where operations continue but,because of layoffs and/or new hires,the union lacks a majority,the employer has an obligation to honor a contract.
• D) When a closed firm is reopened by new owners,the bargaining relationship ceases to exist if a majority of the employees worked for the former company and were in a represented unit.

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Definitions:

Vertical Analysis

A financial analysis method that compares various line items in a company's financial statements over a single period, expressing each item as a percentage of a base amount to assess relative size and structure.

Comparative Financial Statements

Financial statements that present financial information for different periods or dates side by side to facilitate comparison.

Corporations

Are legal entities that are separate and distinct from their owners. They have the ability to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

Vertical Analysis

A method of financial statement analysis in which each entry is listed as a percentage of another item, typically used for income statements where entries are compared to total sales.