Which of the following is not a factor that helps to explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate?
A) Employees have high bargaining power.
B) The cost of employee replacement is high.
C) The cost of exit is high for an employee.
D) Managers have low bargaining power.

Question

Quizplus · Accepted Answer

Four factors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate:employee bargaining power, employee replacement cost, employee exit costs, and manager bargaining power. Manager power is based on how well they create resource-based advantages. They are generally charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital. Such activities provide managers with sources of information that may not be readily available to others.

Which of the Following Is Not a Factor That Helps