Company a Is Reducing Production Because of a Decrease in Demand

question 30

Multiple Choice

Company A is reducing production because of a decrease in demand for its product. When the company reduces the size of its unionized workforce, which of the following is
Correct:

• A)the union must be given reasonable notice
• B)employees must be given reasonable notice
• C)employees must be given the notice provided for in the collective agreement
• D)younger employees must be laid off first
• E)employees cannot be terminated unless the union consents

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Definitions:

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets, indicating liquidity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its day-to-day operations.

Current Liabilities

Obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Days' Sales In Inventory

Days' Sales in Inventory is a financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.