If a firm was owned by its employees,
A) there is a higher probability that wage reductions would outweigh layoffs.
B) those in charge would not act any differently than regular owners; there would still be layoffs.
C) those not in charge would remain risk neutral.
D) wage reductions would be lower than if the firm was run for profit.

Question

Quizplus · Accepted Answer

Employee-owned firms often prioritize job security over wage levels, meaning they might prefer wage reductions to layoffs to preserve employment for their members.

If a Firm Was Owned by Its Employees