Technical Solutions Inc

question 65

Multiple Choice

Technical Solutions Inc.,a leading software solutions firm in Dallas with 1000 employees,is facing a financial crunch because of the economic downfall.Several of its key investors have backed out,and it has lost some projects to its competitors.The SEO of the company considers cost-cutting measures to turn around the organization.An analysis of the situation reveals that many of its employees have become redundant as their work roles have reduced considerably.The firm also employs a large number of people who are almost at the retirement age.Which of the following measures will be most appropriate for the company,from a business perspective?

• A) downsizing
• B) vertical integration
• C) outsourcing
• D) diversification
• E) market penetration

---

Definitions:

Profit Maximizing

Refers to the process by which a firm adjusts its production to achieve the highest possible profit based on given market conditions and cost structures.

Employment

The condition of having paid work, or the total number of people who are currently employed or actively looking for work.

Variable Input

Inputs or resources whose quantity can be changed in the short term to adjust the level of production, such as labor or raw materials.

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by the demand and supply of labor.