Which of the Following Statements Is True About Downsizing

question 70

Multiple Choice

Which of the following statements is true about downsizing?

• A)The typical organizational response to a surplus of labor has been downsizing, which is slow but low in human suffering.
• B)An organization turns to downsizing only in times of recession.
• C)In firms that are high in research and development intensity, downsizing has been linked to higher long-term organizational profits.
• D)The negative effects of downsizing seem to be reduced in service industry's characterized by high levels of customer contact.
• E)Downsizing efforts often fail because employees who survive the purges often become narrow-minded, self-absorbed, and risk-averse.

Describe how long-run and short-run costs behave and influence firm decisions.

Analyze the impact of output changes on a firm's cost in the long run.

Recognize how specialization and coordination problems affect a firm's costs.

Interpret graphs and tables to determine a firm's cost behavior over different output levels.

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Definitions:

Total Individually

Calculating or assessing each item on its own, then summing them up for a total figure, often used in accounting or inventory management.

Sales Journal

A dedicated bookkeeping ledger designed for noting every credit sales transaction a business conducts.

Purchases Journal

A ledger in accounting used specifically to record all purchase transactions of a company, especially those made on credit.

Cash Payments Journal

A business ledger documenting every cash disbursement, encompassing expenditures, acquisitions of assets, and repayment of liabilities.