Which of the Following Statements Regarding Downsizing Is True

question 96

Multiple Choice

Which of the following statements regarding downsizing is true?

• A) Organizations that are able to demonstrate fairness are more likely to make the hoped-for gains from downsizing.
• B) Employees who have been laid off almost always feel badly about their previous employer.
• C) Employees who have been laid off are unlikely to return to the company if asked.
• D) It is generally in the best interests of the employee to challenge the decision.
• E) The initial screening process can be considered a failure.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Fair Value Enterprise Method

A valuation approach that estimates the value of an entire enterprise based on the fair value of its assets and liabilities.

Equity Method

An accounting technique used by companies to record their investments in other companies, based on the equity or ownership stake in those companies.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life, applicable to intangible assets.