Paul Has Been Assigned with the Task of Efficient Downsizing

question 114

Multiple Choice

Paul has been assigned with the task of efficient downsizing. Which of the following should Paul avoid while performing this task?

• A)Making slow, small, and frequent layoffs
• B)Identifying and protecting talented people
• C)Giving special attention and help to those who lost their jobs
• D)Communicating constantly with people about the process
• E)Identifying how the organization will operate more effectively in the future

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Definitions:

Financial Leverage

The use of borrowed funds (debt) to amplify returns from an investment or project.

Fixed Asset Turnover Ratio

A performance metric that evaluates how efficiently a firm uses its fixed assets to generate sales.

Total Asset Turnover Ratio

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Inventory

Tangible property held for sale in the normal course of business or used in producing goods or services for sale.