All of the Following Are Benefits of Downsizing EXCEPT

question 29

Multiple Choice

All of the following are benefits of downsizing EXCEPT :

• A) tremendous cost reductions.
• B) improved management of operations.
• C) constant and close supervision on each level.
• D) higher profits.

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Definitions:

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to hold, used to optimize its financial performance and risk profile.

Capital Budget

The budgeting process relating to expenses for major capital, or investment, projects and purchases in a company.

Total Dividend Payment

The sum of all dividends that a company pays out to its shareholders for a specific period.

Residual Dividend Policy

A strategy where dividends are based on earnings remaining after all project capital needs are met.