Balsam Corporation is concerned about their current bad debt ratio of 9%. The CFO believes imposing a more stringent credit policy may reduce sales by 8% and reduce the bad debt ratio to 6%. If the cost of goods sold is 85% of the selling price, determine if the new policy should be undertaken.

A) Do not undertake; decrease of 34% in profits
B) Undertake; increase of 38% in profits
C) Do not undertake; decrease of 36% in profits
D) Undertake; i


Ans: B) Undertake; increase of 38% in profits

Business

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Indicate whether the statement is true or false

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Answer the following statements true (T) or false (F)

1. Martin Sheet Metals is a mid-sized metal manufacturing company whose employees attempted a union organizing drive that ended with an election in May. The union lost the election. By October, employees had gathered authorization cards to request another union election. It is likely that the NLRB will hold another election as soon as possible. 2. Generally speaking, a decertification election may be held as soon as the employees or employer are able to show that at least 30% of employees desire decertification. 3. The NLRB is responsible for determining which employees will be included in the bargaining unit and therefore have rights to vote in a union election. 4. "Community of interest" refers to a principle used by the NLRB to define bargaining units so as to ensure that the employer and employees can find common ground over issues that need to be negotiated. 5. When determining bargaining units, the NLRB may rule that many occupations in diverse locations can make up a single unit.

Business