When an Organization Adopts a Turnaround Strategy, Its HR Managers

question 63

Multiple Choice

When an organization adopts a turnaround strategy, its HR managers need to be involved in:

• A) recruiting entrepreneurial employees who are highly flexible and ambitious.
• B) retaining the existing employees when the firm cannot offer any advancement opportunities.
• C) decreasing the size of the organization's workforce.
• D) rotating managers across various businesses of the corporation.

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Definitions:

Acid-test Ratio

A stringent indicator of a company’s short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory.

Debt-to-equity Ratio

The ratio that indicates the mix between shareholders' equity and debt in the capital structure used to finance assets.

Receivable Turnover

A financial metric that measures how efficiently a company collects on its accounts receivable, calculated as sales divided by accounts receivable.

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.