What Strategy Is Characterized by Significant Cost Reductions,the Layoffs of Employees,the

question 5

Multiple Choice

What strategy is characterized by significant cost reductions,the layoffs of employees,the closing of poorly performing stores,offices,or manufacturing plants,or the closing or selling of entire lines of products or services?

• A)portfolio  
• B)retrenchment  
• C)stability  
• D)firm-level

Understand and apply the concepts of mean, median, mode, and range in various contexts.

Evaluate the distributions of data sets based on given summary statistics.

Understand the significance of outliers in a data set and how they affect measures of central tendency and spread.

Differentiate between symmetric and asymmetric (skewed) distributions.

---

Definitions:

Profitability Index

A financial metric that measures the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Payback

The period of time required for the return on an investment to "repay" the original investment cost.

Discounted Payback

A capital budgeting method that calculates the time required to recoup an investment based on discounted cash flows.