During labor negotiations, the management of a company reaches the point where it states that it will give a maximum of a 6-percent pay increase to all the employees of the company and not more. Despite threats of further agitation, the management sticks to its decision. In the given scenario, the management has reached its _____.
A) break-even point
B) resistance point
C) target point
D) arbitration point

Question

Quizplus · Accepted Answer

The management's resistance point is the maximum or minimum point beyond which it will not negotiate. In this scenario, the 6-percent pay increase represents the maximum that management is willing to offer, making it their resistance point.

During Labor Negotiations, the Management of a Company Reaches the Point