A Volunteer Separation Program Is Subject to Both Up-Front Costs

question 80

Multiple Choice

A volunteer separation program is subject to both up-front costs and another drawback. Which statement best captures the second key drawback?

• A)Some people who take advantage of the program are employees the company would like to retain.
• B)The method is viewed as less "humane" than layoffs with severance pay.
• C)A significant loss of morale by "survivors" affects turnover and productivity.
• D)The enhancement of the paternalistic culture of the organization leads employees to feel a sense of entitlement.

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Definitions:

Constant Growth Model

A model used to estimate the value of a stock assuming that dividends grow at a constant rate indefinitely.

Required Return

The basic yearly rate of return essential for inducing companies or individuals to invest money into a specific project or security.

Annual Dividend

The total dividend payment a shareholder will receive from a company in a single year, per share owned.

Rate Of Return

The success or failure of an investment over a tailored period, represented in terms of the percentage of the investment's cost price.