When the Middle-Level Manager of the Production Department at Wilson

question 49

Multiple Choice

When the middle-level manager of the production department at Wilson Works was laid off, many employees who worked under him became apprehensive about their job security. They were aware of the current trend toward laying off employees in the economy. The termination of their manager combined with the fact that their division had performed only moderately well in the last two quarters led the employees to believe that they were at a high risk of losing their jobs as well. Which of the following, if true, would weaken the argument that the production manager should hold face-to-face meetings to assure the employees in the production division?

• A) The employees have serious concerns over job security.
• B) Rumors had spread about impending layoffs at Wilson Works.
• C) The middle-level manager supervised over five hundred employees.
• D) Wilson Works has a strong formal communication network in place.
• E) The company has no fixed policy with regard to rightsizing employees.

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Definitions:

Generally Accepted Accounting Principles

The framework of guidelines for financial accounting that includes details on how accounting transactions should be reported.

Horizontal Analysis

A technique in financial analysis that compares line items in financial statements over a series of periods.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Inventory Turnover

A measure of the liquidity of inventory; computed by dividing cost of goods sold by average inventory.