Which of the Following Is a Potential Effect of Downsizing

question 26

Multiple Choice

Which of the following is a potential effect of downsizing?

• A) increase in voluntary departure of other skilled employees
• B) surviving employees' belief that the organization is unstable
• C) difficulty in recruiting talent
• D) all of the above

---

Definitions:

Chapter 7 Bankruptcy

A type of bankruptcy that involves the liquidation of a debtor's assets to repay creditors, under the U.S. Bankruptcy Code.

Free Assets

Assets that are not encumbered by any liens or claims, available to be used or sold freely by the owner.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Historical Cost

The original monetary value of an asset or investment, without adjustment for inflation or depreciation, used in accounting to determine financial statements.