Clarita Cosmetics Is Confronting a Decline in Sales Due Largely

question 94

Multiple Choice

Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn. The top management team is debating whether to lay off employees. In the debate, the following statements are made. Which of the statements is FALSE?

• A) If Clarita Cosmetics lays off a large number of employees, there will be a significant loss of human capital that will cause further downturns in the firm's performance.
• B) A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance.
• C) If Clarita Cosmetics restructures, it ought to increase investments in training and development.
• D) A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks.

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Definitions:

Cultural Meaning

The shared significance or interpretation of practices, objects, or symbols within a particular culture, shaped by collective beliefs, values, and experiences.

Values and Actions

Values and actions refer to the relationship between what individuals believe in, consider important, and how they behave or act in various situations.

Individual Realms

Focuses on areas or fields where individual actions, choices, or behaviors are predominant.

Presumption

An assumption or belief that is taken as true without concrete evidence to support it.