A Manufacturing Company Has Implemented an Across-The-Board Cost-Cutting Strategy

question 62

Multiple Choice

A manufacturing company has implemented an across-the-board cost-cutting strategy. The company's goal is to reduce expenses by 10 percent without sacrificing product quality. The decision was made by the company's top management without input from its employees. How are its employees likely to show their resistance to the organizational change?

• A) insincere agreement
• B) in-your-face defiance
• C) sabotage
• D) malicious compliance
• E) all of the above

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Definitions:

Regressive Tax System

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.

Taxpayers

Individuals or entities that are required to make payments to the government based on income, property, goods, and services.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of additional income that will be taxed.

Average Tax Rate

The portion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the total income.