Which Statement Is True About Downsizing

question 1

Multiple Choice

Which statement is true about downsizing?

• A) HRM cannot, and should not, inform all employees why downsizing is necessary.
• B) HRM should withhold information regarding downsizing rather than maintain open communication with remaining employees.
• C) Downsizing is associated with positive stock returns.
• D) Downsizing results in higher profitability following layoffs.
• E) HRM can provide downsized employees with outplacement services to help them find new jobs.

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Definitions:

Internal Controls

Processes and procedures designed to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and regulators.

Independent Internal Verification

A process within a company to check the accuracy and completeness of transactions by having them reviewed by a third party or separate department.

Segregation

In business or accounting, this often refers to the separation of duties or resources to prevent errors or fraud; in broader societal terms, it can mean the division of groups based on characteristics.