Which of the Following Is True of the "Ability to Pay

question 39

Multiple Choice

Which of the following is true of the "ability to pay" negotiation theory:

• A) Is commonly expressed during wage negotiations.
• B) Management will argue that capital investment should receive a share of higher profits.
• C) Union negotiations will expect to maintain pay levels not decrease them, when profits are down.
• D) Past profit levels may not be maintained in the future-to pay higher negotiated wages.

---

Definitions:

Member-Managed

Pertains to an organizational structure, typically in LLCs, where all members participate directly in decision-making and management activities.

Majority Vote

A decision-making process where the option that receives more than half of the votes is chosen.

Business Decisions

Choices made by individuals or groups in the context of business operations that affect the organization's strategy and performance.

Federal Jurisdictional Purposes

The purposes for which federal law or courts have the authority to apply, hear, and decide on legal matters or disputes.