Which of the Following Sentences to Employees Best Explains the Reasons

question 10

Multiple Choice

Which of the following sentences to employees best explains the reasons for a reduction in a company workforce?

• A)Although we would like to retain our current workforce, we have no choice but to reduce the number of employees.
• B)We did everything possible to prevent this from happening.
• C)The decision cannot be changed.
• D)Because of a decrease in sales, the number of employees will need to be reduced, which we know will affect all of you.

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Definitions:

Skimming Pricing

A pricing strategy involving setting high prices at the launch of a new product to maximize profits from customers willing to pay more, before lowering the price over time.

Prestige Pricing

A pricing strategy where prices are set higher than normal because the product or service is perceived to have a prestigious status or high quality.

Total Variable Costs

The summation of all costs that vary with the level of output or production, such as materials and labor.

Breakeven Analysis

The calculation to determine the number of products or services a business needs to sell to cover its costs, identifying the point at which revenue equals expenses.