Labor unions use financial statements of a company to

Question

A. Assess the firms cash flow in order to repay loans
B. Assess the companies profitability and indented to lenders
C. Determine whether the company meets investment requirements
D. Establish reasonable expectations for salary and other benefit requests

Answer 1

Labor unions primarily use financial statements of a company to:

D. Establish reasonable expectations for salary and other benefit requests

Labor unions analyze financial statements to better understand the company's financial health, profitability, and overall economic condition to support negotiations for fair wages and benefits. While the other options may involve elements relevant to stakeholders in general, option D specifically aligns with the interests and goals of labor unions.