Identify the Similarity Between the Natural Attrition and Early Retirement

question 28

Multiple Choice

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

• A) Both strategies yield slow results for an organization.
• B) Both strategies cause high suffering to the employees of an organization.
• C) Both strategies can be applied for preventing labor shortages.
• D) Both strategies are expensive to implement.
• E) Both strategies encourage layoffs.

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Definitions:

Credit Policy

The guidelines a company follows to determine credit terms, credit limits, and collection procedures for its customers.

Overdue Accounts

Accounts receivable that have not been paid by the due date, indicating delayed payments from customers.

Lock Box

A banking service provided to companies for the collection of payments from customers, where the payments are sent directly to a post office box, then quickly processed by the bank.

Mail Float

The time delay between when a check is written and mailed, and when the recipient actually receives and processes the payment.