A Software Firm Has Lost a Major Client and the Immediate

question 64

Multiple Choice

A software firm has lost a major client and the immediate impact is a loss of work.Software programmers are difficult to recruit and train, so the firm is considering alternatives to laying off employees.The company could consider any of the following except

• A)asking employees if they are willing to take unpaid leaves to help reduce costs.
• B)asking employees to schedule vacation during the period when there is less work.
• C)asking employees to participate in a lottery to determine who should be let go (since it is unbiased).
• D)asking employees to take a voluntary reduction in pay (or reduced hours of work).
• E)All of the above are options for the software firm.

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Definitions:

Horizontal Acquisition

The purchase of a competing company in the same industry, aiming to increase market share or achieve economies of scale.

Vertical Acquisition

The purchase of a company that operates in the production process of the acquiring company's industry, either as a supplier or distributor.

Revenue Enhancement

Strategies or activities undertaken by a company to increase its income/revenue, potentially including new product launches, market expansion, and sales promotions.

Market Power

The ability of a firm to influence the price or quantity of goods or services in a market, often due to its size or unique positioning.