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:

Risk

The potential for experiencing loss, damage, or any other negative outcome as a result of action or inaction.

Timely Manner

The completion of tasks or fulfilment of obligations within an expected or agreed timeframe, often critical for efficiency or compliance.

Agreed Upon Time

A specific time or deadline that has been mutually decided upon by all parties involved in a transaction or agreement.

Inspects Goods

The act of examining products for quality, safety, and compliance with specifications or regulations before acceptance.