"Layoffs Improve Efficiency and Lower Costs

question 77

Multiple Choice

"Layoffs improve efficiency and lower costs." How would you best describe this statement?

• A) It's True. Smart cost reductions save companies in trouble.
• B) It's False, although downsizing was highly regarded at first.
• C) It's False. Downsizing does not have positive benefits for the organization.
• D) It's True, but only for some organizations; others do better by offering a strong commitment to job security.

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Definitions:

Withdrawals

The act of removing funds from a bank account or investment vehicle.

Compounded Quarterly

An interest calculation method where interest is added to the principal sum of a deposit or loan on a quarterly basis, leading to interest earning interest.

Present Value

The present worth of a future amount of money or series of cash inflows based on a certain return rate.

Retirement Annuities

Financial products that provide a stream of payments to individuals after retirement, typically funded through premiums paid over time.