A firm that operates a closed shop
A)generates more profits than a firm beset by union strikes.
B)is less under organized labor's control than a union shop.
C)can only hire workers who are already union members.
D)hires only nonunion workers.

Question

Quizplus · Accepted Answer

A closed shop is a workplace where only employees who are already members of a specific union are hired. This means that the firm can only hire workers who are already union members, limiting the available pool of potential workers. While the closed shop can lead to better control and coordination of labor within the firm, it may also limit organizational agility and responsiveness to changing market conditions.

A Firm That Operates a Closed Shop