Which of the Following Is a Negative Effect of Downsizing

question 35

Multiple Choice

Which of the following is a negative effect of downsizing?

• A)In case the laid-off employees are a part of any labor unions, the company may have to fight the unions legally.
• B)Many downsizing campaigns let go of people who turn out to be irreplaceable assets.
• C)Downsizing interferes with the optimization of resources brought through voluntary transactions in the market.
• D)Downsizing is time-consuming because managers have to go through employee records to look for low performers.
• E)Downsized companies have to deal with the extra pressure of gaining back the business and confidence of the client.

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Definitions:

Exchange-Traded Fund

An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product, the shares of which are traded on stock exchanges.

Market Beta

A measure of a stock's volatility in relation to the market; a beta greater than 1 indicates higher volatility than the market.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its market capitalization.

Composition

The makeup or structure of something, such as the arrangement and proportion of parts within a work of art or a financial portfolio.