Why Is Downsizing Similar to Pruning

question 31

Multiple Choice

Why is downsizing similar to pruning?

• A)Both are responses to technological innovation.
• B)Both are ways in which managers are asked to leave their companies.
• C)Both are ways to reduce the span of control.
• D)Both are ways to increase the staffing ratio.
• E)Both leave the organization more vulnerable to its environment.

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Definitions:

Arithmetic Return

The simple average of a series of periodic returns of an investment.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Population

The total number of individuals within a specific area or of a particular species or group.

Rate of Return

The rate of return is the net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.