When a Large Business Like IBM or General Motors Downsizes

question 32

Multiple Choice

When a large business like IBM or General Motors downsizes and lays off workers, some of these displaced employees decide to start their own businesses. They are best described as

• A) foreign refugees.
• B) welfare profiteers.
• C) reluctant entrepreneurs.
• D) corporate entrepreneurs.

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Definitions:

Economic Order Quantity

A calculation used to determine the most efficient order size that minimizes the sum of ordering and holding costs associated with inventory management.

Holding Costs

Expenses associated with storing inventory, including warehouse storage fees, insurance, and spoilage costs, until the inventory is sold or used.

Purchase Price

The amount of money required to acquire a good or service.

Stock-Out Costs

The expenses incurred by a business when it runs out of stock on a particular item, including lost sales, customer dissatisfaction, and potential reduction in market share.