Instructions: Your answer should demonstrate your ability to analyze the facts, apply the pertinent laws and jurisprudence, and arrive at a sound or logical conclusion. Always support your answer with the pertinent laws, rules, and/or jurisprudence. A MERE "YES" OR "NO" ANSWER WITHOUT ANY CORRESPONDING EXPLANATION OR DISCUSSION WILL NOT BE GIVEN FULL CREDIT. THUS, ALWAYS BRIEFLY BUT FULLY EXPLAIN YOUR ANSWERS ALTHOUGH THE QUESTION DOES NOT EXPRESSLY ASK FOR AN EXPLANATION.

X sold all his shares in AAA Hotel Corporation to Y. X owns 99% of AAA Hotel Corporation. As the new owner, Y wanted a reorganization of the hotel which is to include primarily the separation of all existing employees and the hiring of new employees. Which statement is most accurate? Explain a) With the change in ownership, in effect there is a new juridical entity and therefore all employees are considered separated; b) Despite the change in shareholder, there is actually no change in the juridical entity and therefore existing employees cannot automatically be considered separated; c) Y, as the new shareholder, has the right to retain only those employees who in his judgment are qualified; d) For as long as the existing employees are given their separation pay, they can be terminated.