Firms Use Downsizing as a Restructuring Strategy for Different Reasons

question 134

Multiple Choice

Firms use downsizing as a restructuring strategy for different reasons, but the major tactical reason is

• A) poor unit performance from decreasing industry attractiveness.
• B) decreasing market share from increasing industry competition.
• C) shifting industry characteristics.
• D) the desire to lower labor costs.

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Definitions:

T-test

A statistical method employed to ascertain whether there's a notable difference in the average values of two distinct groups.

Null Hypothesis

A statement positing that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Probability

A measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Null Hypothesis

A type of hypothesis used in statistics that suggests there is no significant difference or effect in a particular condition, serving as a default position until evidence suggests otherwise.