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How Do Mergers Typically Affect Employees

Question 16

Multiple Choice

How do mergers typically affect employees?


A) Employee morale and productivity increase with the injection of new resources into previously stagnant companies.
B) Top management of acquired firms are frequently fired without compensation and replaced by management of the acquiring company.
C) Employee job security is not threatened because existing labor contracts are recognized by the acquiring company.
D) Ambiguity in role expectation may decrease employee motivation.
E) There is a legal requirement that the employees receive 120 days notice before a layoff.

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