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A Sign of the Times (Scenario)

question 2

Multiple Choice

A Sign of the Times (Scenario)
After hearing of the threat for a long time, Lina's company had finally decided that it must "right-size," and this meant coming up with a plan for reducing the current size of the workforce at her manufacturing plant. The job was left to her, and as much as she hated doing this part of her job, it was necessary for the survival of the company and not just an effort to inflate their stock price. She also appreciated that her company was willing to try many different routes to decrease their labor costs, which was consistent with the positive way the company had treated their employees in the past.
-Lina suggests to management that by not filling openings created by voluntary resignations or normal retirements, the organization may avoid much of the pain associated with workforce reduction. This option is known as ________.

Definitions:

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.

AIG

American International Group, a multinational finance and insurance corporation known for its extensive global operations and services.

Fannie Mae

A government-sponsored enterprise (GSE) in the United States aimed at expanding the secondary mortgage market by securitizing mortgages into mortgage-backed securities.

Capital Stock

The total amount of physical goods a company owns for the purpose of production, including buildings, machinery, and equipment.