Suppose Bad Weather in Florida Unexpectedly Results in a Much

question 67

Multiple Choice

Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would tend to cause the labor demand curve for citrus pickers to shift to the

• A) right, increasing wages.
• B) right, decreasing wages.
• C) left, increasing wages.
• D) left, decreasing wages.

Analyze the potential short, medium, and long-term outcomes of downsizing on both the organization and its employees.

Understand the roles of communication and employee participation in minimizing the negative consequences of downsizing.

Identify different types of restructuring and their objectives in an organizational context.

Understand the concept and strategic implications of organizational downsizing.

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Definitions:

Depreciation Tax Shield

The reduction in income taxes that results from taking a deduction for depreciation on the company's tax return, effectively reducing taxable income.

Cash Outlays

Payments in cash for expenses or investments made by a business or individual.

Auto Leases

Contracts that allow a person to use a car for a set period of time in exchange for regular payments, without owning the vehicle.

Lessee

The party in a lease agreement that gains the right to use an asset in exchange for making payments to the lessor.