A Software Firm Has Lost a Major Client and the Immediate

question 64

Multiple Choice

A software firm has lost a major client and the immediate impact is a loss of work.Software programmers are difficult to recruit and train, so the firm is considering alternatives to laying off employees.The company could consider any of the following except

• A)asking employees if they are willing to take unpaid leaves to help reduce costs.
• B)asking employees to schedule vacation during the period when there is less work.
• C)asking employees to participate in a lottery to determine who should be let go (since it is unbiased).
• D)asking employees to take a voluntary reduction in pay (or reduced hours of work).
• E)All of the above are options for the software firm.

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Definitions:

Average Assets

The mean value of a company’s assets over a given time frame, often used in financial analysis to assess asset utilization efficiency.

Full Cost

The total cost of producing a product or service, including all direct, indirect, fixed, and variable costs.

Price-Fixing Contracts

Agreements between competitors to set prices at a certain level, which is illegal in many jurisdictions because it undermines free market competition.

Competition

The rivalry among businesses to attract customers and achieve market dominance.