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Domino Grace Is a Financial Services Firm

Question 158

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Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would most strongly support the Domino Grace CEO's argument?


A) The current proposal calls for all Kryptos employees with outstanding benefit packages to keep them in the merged company.
B) Shareholders of Domino Grace tend to support the merger.
C) According to the charters of both companies, any savings from reducing benefits would be recorded in a post-merger report.
D) A recent economic downturn has reduced the ability of many in the financial services industry to find new jobs.
E) Kryptos provides paths to advancement that are faster than those offered by most companies in the industry.

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