When an Organization Uses Layoffs to Handle a Labor Surplus

question 33

Multiple Choice

When an organization uses layoffs to handle a labor surplus all of the following may occur EXCEPT:

• A) work related injuries may decrease due to an increased focus on safety.
• B) overtime may increase due to remaining workers taking on additional work load.
• C) the organization may lose history and knowledge that is difficult to recapture.
• D) work related stress may increase for those who "survive" the lay off.
• E) new work relationships may need to be established if employees are transferred.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reflecting its use and wear over time.

Investing Activity

A category in financial statements that represents cash flows related to the purchase or sale of long-term assets or investments.

Statement Of Cash Flows

A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.

Sale Of Equipment

The process of selling off business assets, such as machinery or office equipment, usually to generate cash.