Suppose That Due to a Shortage of Parts from Its

question 215

Multiple Choice

Suppose that due to a shortage of parts from its Asian suppliers, Apple experienced a 25% drop in its sales. Even though its sales decreased, Apple did not cut the wages of its non-unionized workers. This is an example of

• A) an implicit or social contract not to cut wages.
• B) employment-at-will.
• C) poor management.
• D) an explicit contract not to cut wages.

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Definitions:

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, demonstrating the efficiency of management in using assets to generate profit.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from its total revenue, indicating the company's profitability over a specific period.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.

Land and Building

Real estate assets including both the physical ground (land) and any structures (buildings) that are permanently attached to it.