Immediately Following a Reduction-In-Force It Is Essential To

question 12

Multiple Choice

Immediately following a reduction-in-force it is essential to:

• A) Attempt to unite the survivors into a forward-moving team and to motivate them to work harder in this new situation.
• B) Provide the survivors with assurances of continued employment.
• C) Tell everyone who remains the specific reasons why certain people were released.
• D) Move forward, behaving as though nothing out of the ordinary has occurred.

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Definitions:

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of production or with volume of output.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in its price.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning that a small change in price results in a large change in the quantity demanded.