Question

With reference to the principles used for combining seniority lists in the event of a merger, the ________ principle gives employees rank positions on the merging seniority lists equal to their rank position on the prior seniority lists. a associative rank b absolute rank c rank maintenance d ratio-rank

Answer 1

The correct answer is letter "B": absolute rank.

Step-by-step explanation:

A merger is usually a combination of two companies by mutual agreement. In most mergers, the two companies merge to form a completely new company. Mergers take place for many reasons and in several ways. Horizontal mergers and vertical mergers can take place.

When it comes to the seniority of the employees in the newly merged organization, different events can happen. The absolute-rank principle states that both the merging company and the merged organization senior employees keep their rank after the combination of the firms. Under this approach, the employees who were in the first place of their corresponding entity's list will occupy the first place in the merged firm. The problem arises in determining who will be first and who te second.