Why Should a Company Analyze Its Turnover Rate

question 33

Multiple Choice

Why should a company analyze its turnover rate?

• A)A low turnover rate shows that a company is not running as efficiently as it could be,and some employees should be let go.
• B)A low turnover rate indicates that the company is too generous with employees or is not requiring enough of them.
• C)A high turnover rate indicates that the company has an underdeveloped or unnecessary product,and it should spend more money on research and development.
• D)A high turnover rate costs a company money in hiring processes and training,so analyzing the rate allows companies to fix problems to save money.
• E)A high turnover rate highlights problems with the chain of command,and a company should consider flattening the organization.

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Definitions:

Demand Function

An illustrative model that displays the amount of a product buyers are prepared and capable of buying at different price levels.

Pumpkins

A plant belonging to the squash family, often used for food, decoration, or as commodities in agricultural markets.

Constant Marginal Cost

A situation where the cost of producing an additional unit of output is the same, regardless of the volume produced.

Inverse Demand

A mathematical function that expresses the price of a good or service as a function of the quantity demanded, showing how price changes with demand.