In an Effort to Prevent Downsizing Its Employees, ABC Inc

question 60

Multiple Choice

In an effort to prevent downsizing its employees, ABC Inc. has asked its staff to accept reduced pay. What strategy is ABC Inc. using?

• A) furloughing
• B) employee leasing
• C) reduced downsizing
• D) outsourcing

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and equity at a specific point in time, giving insight into its financial position.

Income Statement

A financial statement that reports a company's financial performance over a specific period, including revenues, expenses, and net income.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded at the end of an accounting period.

Current Assets

Current Assets are assets that a company expects to convert into cash or use up within one year or its operating cycle, whichever is longer.