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:

Strategic Objectives

Specific, measurable goals that an organization aims to achieve in line with its strategic plan to drive it towards its long-term vision.

Economies of Scope

Cost advantages that businesses obtain through diversification, where producing a wider variety of products can lead to lower average costs.

High-fat Protein Diets

Diets that emphasize high intake of proteins and fats, often minimizing carbohydrates, possibly used for weight loss or other health goals.

Lipid-lowering Drugs

Medications prescribed to reduce levels of fats, including cholesterol and triglycerides, in the blood to prevent cardiovascular diseases.