The Hale Burton Oil Pipeline Construction Corporation has ha

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The Hale Burton Oil Pipeline Construction Corporation has had a bad quarter. Rather than lay off workers to cut costs, however, it will simply defer salaries for 30 days and hold them in a mutual fund to pick up interest to cover expenses. By doing this the company and its employees will avoid the negative consequences often associated with earning shortfalls.

Which of the following, if true, is the best criticism of the corporation,Aos plan?
A. Employees will not be able to control which mutual funds the salaries will be diverted into.
B. The corporation cannot save money by cutting staff because it is already understaffed.
C. Some employees will need to borrow money to hold them over until the 30 days are up and they will consequently have 30 days of interest on these loans.
D. Some employees will not be affected by the rollover because they have savings.
E. The corporation's budget was cut by 15% last year.

OA C

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by deloitte247 » Tue Mar 19, 2019 7:23 am

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OPTION A:- INCORRECT
This can't be a serious criticism to the the plan because the salaries is still in the corporation's possession and that means and that means that the employees won't be able to control which mutual funds their salaries has been diverted to.

OPTION B:- INCORRECT
If true that the corporation cannot save money by cutting off off staffs due to the fact that they are understaffed, a plan to defer their salaries for 30 days to be put in a mutual funds to pick up interests has been put in place to prevent the laying off workers.

OPTION C:- CORRECT
The fact that the employees will have to borrow money to sustain themselves till 30 days is over happens to be the best criticism to the plan, because the plan does not include a way to sustain the employees before the end of the supposed 30 days.

OPTION D:- INCORRECT
This supports the argument. The fact that some employees won't be affected by the rollover because they have savings gives the corporation more reasons to go on with the plan.

OPTION E:- INCORRECT
This doesn't criticize the plan because the argument isn't concerned with the percentage cut of the corporation's budget, its most concern is how to cut cost which led to the plan.