When the Middle-Level Manager of the Production Department at Wilson

question 49

Multiple Choice

When the middle-level manager of the production department at Wilson Works was laid off, many employees who worked under him became apprehensive about their job security. They were aware of the current trend toward laying off employees in the economy. The termination of their manager combined with the fact that their division had performed only moderately well in the last two quarters led the employees to believe that they were at a high risk of losing their jobs as well. Which of the following, if true, would weaken the argument that the production manager should hold face-to-face meetings to assure the employees in the production division?

• A) The employees have serious concerns over job security.
• B) Rumors had spread about impending layoffs at Wilson Works.
• C) The middle-level manager supervised over five hundred employees.
• D) Wilson Works has a strong formal communication network in place.
• E) The company has no fixed policy with regard to rightsizing employees.

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Definitions:

Selling Inventory

The process of selling goods and products that a company holds in stock, often a major revenue source.

Cash Cycle

The period between when a business pays for its inventory or services and when it receives payment for its products or services, effectively measuring the efficiency of its cash management.

Receivables

Funds owed to a business by its clients for products or services that have been provided or utilized, but payment has not yet been received.

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to assess the efficiency of inventory management.