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

Question 12

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.

Correct Answer:

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