Retrenchment Would Be an Effective Strategy When an Organization

question 37

Multiple Choice

Retrenchment would be an effective strategy when an organization

• A) has shrunk so quickly that major internal reorganization is needed.
• B) is one of the stronger competitors in a given industry.
• C) is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance.
• D) has decided to capitalize on opportunities, maximize threats, take advantage of strengths, and overcome weaknesses.
• E) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.

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Definitions:

Federal Insurance Contributions Act

A U.S. law that mandates a payroll tax on the paychecks of employees, as well as contributions from employers, to fund the Social Security and Medicare programs.

Cumulative Gross Earnings

The total gross income earned by an individual or entity before any deductions over a given period.

State Tax Rate

The percentage at which individuals or businesses within a state are taxed by the state government.

FICA

The Federal Insurance Contributions Act; a U.S. law that requires a deduction from paychecks to fund Social Security and Medicare benefits.