To Avoid Business Failure,Terri Holt,a Small Business Owner,has Reduced the Size

question 35

Multiple Choice

To avoid business failure,Terri Holt,a small business owner,has reduced the size of her company's workforce by ten percent.This action is referred to as

• A) Downsizing
• B) Outsourcing
• C) Innovating
• D) Networking

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Definitions:

Marginal Productivity Theory

An economic theory that explains income distribution based on the productivity of the factor inputs in producing goods and services.

Income Distribution

The way in which a nation’s total income is spread among its population, affecting economic inequality.

Output Value

The total value of all goods or services produced by a firm or economy, often measured in terms of monetary value.

Imperfectly Competitive Market

A market structure where the assumptions of perfect competition, such as a large number of buyers and sellers, homogeneity of products, and free market entry and exit, are not fully met.