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.

---

Definitions:

Stock Price

The cost of purchasing a share of a company, reflecting the company's value as determined by the market.

Industry Booming

A period of rapid and significant growth within a specific industry, often accompanied by increased investment and profitability.

Dividend Reinvestment Plans

Programs allowing investors to reinvest dividends from a corporation into additional shares of that corporation's stock, often without commissions.

Taxed

Subject to a financial charge or levy imposed by a governmental organization on income, transactions, or property.