Chapter 14: Suppose you're a moderating a collective bargaining agreement with a trade union. The general consensus is that two options should be strongly considered during the negotiations (1) the firm's perspective (in this case the firm is ABC Co.), a wholly owned subsidiary of TWW Inc. the parent company; and (2) the employees' perspective on collective bargaining. (a) explain two considerations that you expect to hear from the firm and workers' representative regarding the firm and employee perspective. Include one example for each consideration in your report. (b) ABC Co. parent company TWW Inc. has plans to offer stock options to ABC employees next year. Describe how a stock option could affect new or potential unionized employees at ABC Co. Explain two drawbacks to this plan for the company and employees. (you may reference ch. 17 for this question). (c) In the U.S. is it true that companies have a natural advantage in bargaining with employees? Explain your response from an economic perspective. (you may reference ch. 14, section 14.3 for this question).

Chapter 16: Gem High School Sports Dept. lists a set of safety rules for football players. Some of the rules include safety tips on helmet and extra padding for players. These tips were recommended by ABC Insurance Co. that has monetary ties to a helmet manufacturer. As the school's oversight rep. on Rules and Regulations for sports. (a) Is Gem High School using an objective approach on safety for football players? Explain the issue (relevant to ch. 16) and describe your response for or against the school's decision. Include one reason to support your response. (b) Describe how you plan to address the concerns on possible risks that arise from Gem High School working relationship with ABC Insurance Co. Describe the type of risk(s) and include one reason to support your response. (c) Is there a moral hazard issue or asymmetric information issue with ABC Insurance Co. and the helmet manufacturer? Is there a moral hazard issue or asymmetric information issue with Gem High School and the helmet manufacturer? Explain your response and include one reason to support your response. (d) Based on ch. 16 reading, would you recommend that Gem High School provide transparency on why they chose to partner with ABC Insurance Co. and the helmet manufacturer?

Chapter 17: You and your friend Tommy Wise decided to open an account on E-Trade and have each decided to select four companies to invest in. (a) describe three important characteristics you would look for before making a selection. Include one reason for each characteristic you describe. (b) Your friend Tommy Wise has decided to use a random selection process for his company picks. Do you think this is a sensible way to select companies to invest in? Describe two reasons why or why not. (c) Tommy defends the random selection process as choosing companies with a demonstrated record of high profits. Explain to Tommy why you disagree with the random selection process. Include one reason to support your explanation. (d) Tommy is considering a high risk investment be added to the portfolio. As a new investor, you are concerned that a high risk investment plan is likely to have a low return. Explain two reasons for your concern on a high risk/low return investment. (e) In general, does high risk equate with a low return investment? Briefly describe and include one reason with your response.