Which of the Following Statements Regarding Downsizing Is True

question 112

Multiple Choice

Which of the following statements regarding downsizing is true?

• A) Downsizing refers to the revaluation or splitting of the organization's common stock.
• B) Downsizing typically leads to increased employee morale.
• C) When downsizing, outplacement programs can help the company maintain a positive image in the community.
• D) The best strategy for downsizing is to establish a tall organizational structure as quickly as possible.
• E) Downsizing is seldom a planned strategy; it typically evolves as a result of environmental changes.

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Definitions:

Strategy

A comprehensive plan or set of actions designed to achieve long-term goals or satisfy decision-making under conditions of uncertainty.

Unique Advantage

It denotes a distinctive benefit or competitive edge that separates a company, product, or service from its competitors.

Goods-producing Organizations

Companies that create physical products through the conversion of raw materials and components into finished merchandise.