The auto industry is made up of many auto parts suppliers that are unionized by the United Auto Workers. Explain why the UAW and the auto parts suppliers might prefer a centralized over a decentralized bargaining structure and vice versa.
What will be an ideal response?
Employers are typically believed to prefer decentralized bargaining structures because this forces local unions to compete with each other, reduces the likelihood of pattern bargaining, and therefore allows wage competition to flourish. In addition, it is easier for the employer to address particular needs of individual locations. Unions are generally in favor of centralized bargaining because it allows them to consolidate their power and prevent whipsawing (competing with each other by driving down the price of labor). However, there are some downsides of centralized bargaining for the union. Centralized bargaining makes it more difficult for the union leaders to respond to local member demands because there is greater social and physical distance between them. Centralization also tends to increase the number of issues that arise at the bargaining table and make it difficult to tailor settlements to the individual needs at the local level because you are trying to please many constituents.
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A share development index of 40 means that the business or product has only obtained 40 percent of its share potential
Indicate whether the statement is true or false
Coco Services exchanged an asset with fair value of $12,000 and a cost of $24,000 (now 40% depreciated) for a nonmonetary asset with a fair value of $12,000. In addition, Coco received $2,000 boot. In the entry to record this exchange, Coco should record
A) a $400 loss. B) a $400 gain. C) no gain or loss. D) a $2,400 loss.
The best way to ensure a clear understanding when forming a partnership is to put everything in writing
Indicate whether the statement is true or false
The direct write-off method
a. recognizes losses from uncollectible accounts in the period when a firm decides that specific customers' accounts are uncollectible. b. does not usually recognize the loss from uncollectible accounts in the period in which the sale occurs and the firm recognizes revenue. c. provides firms with an opportunity to manage earnings each period by deciding when particular customers' accounts become uncollectible. d. all of the above. e. none of the above.