​The Managers of a Company Decided to Lay Off About

question 103

Multiple Choice

​The managers of a company decided to lay off about twenty percent of their employees to cope with the financial loss they incurred over the year. This is an example of a(n) _____.

• A)​profit declaration
• B)​​involuntary separation
• C)​compensation
• D)​voluntary separation
• E)job evaluation

---

Definitions:

Historical Rate

The exchange rate between two currencies at a past date, often used for comparative financial analysis or reporting purposes.

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary to the parent company's currency, using exchange rates that change over time.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.

Historical Rate

A foreign exchange rate used to evaluate assets or liabilities, denoting the rate at a specific past date.