How does unionization affect insolvency?
A) The rates of unionized plant closure are higher in the manufacturing industry.
B) Unionization has no consistent effect on a firm's insolvency.
C) Unionized firms are 20 percent less profitable.
D) Management cannot convince unions about saving concession.

Question

Quizplus · Accepted Answer

There is no consistent effect of unionization on a firm's insolvency. While there may be some cases where unions negotiate for higher wages and benefits that could potentially lead to financial strain for the company, there are also cases where unions work with management to make concessions and save the company from insolvency. The relationship between unionization and insolvency is complex and varies depending on the specific circumstances of each case.

How Does Unionization Affect Insolvency