Financial Costs Associated with Downsizing Include ___________

question 29

Multiple Choice

Financial costs associated with downsizing include ___________.

• A)threat to harmonious labour-management relations
• B)decreased employee morale
• C)higher unemployment insurance premiums
• D)difficulty in attracting new employees

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Definitions:

Salvage Value

The anticipated amount an asset is expected to sell for once it reaches the end of its life span.

Pretax Return

The income or profit earned by a business before the deduction of tax.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Annual Cash Savings

The amount of money saved over the course of a year as a result of cost-cutting measures, efficiency improvements, or other savings opportunities.