Which of the Following Statements Is True of the Corporate

question 55

Multiple Choice

Which of the following statements is true of the corporate strategy of downsizing?

• A)Downsizing refers to the process of dramatically cutting the wages of those employees who show low levels of productivity and standards of performance.
• B)Studies show that most companies that engage in downsizing report improvements in product quality,innovation,and organizational climate.
• C)Companies that practice downsizing exhibit an organizational culture that lacks compassion.
• D)The Theory Y approach of management strictly incorporates the strategy of downsizing.

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Definitions:

Fair Competition

refers to a marketplace where businesses operate under rules that prevent monopolies and ensure equal opportunities for all participants.

Factor Payment

Financial compensation given to the factors of production—namely labor, capital, and resources.

Rent

A payment made by a tenant to a landlord for the use of a property or space.

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, market-based allocation of resources, and the creation of goods and services for profit.