Which of the Following Is True of Restructuring

question 32

Multiple Choice

Which of the following is true of restructuring?

• A) It increases the operating costs.
• B) It reduces the morale of the remaining employees.
• C) It does not change the levels in hierarchy.
• D) It affects nonmanagerial employees, but not managerial employees.
• E) Modern information technology's ability to improve efficiency has lessened the amount of restructuring in recent years.

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Definitions:

Outstanding Shares

The cumulative quantity of a company's shares that have been distributed and are currently owned by investors.

Dividend Income

Income received from owning shares in a company, usually distributed from the company's profits.

Growth Rate

The measure of an entity’s growth, expressed in percentage terms, typically calculated for revenue or profit over a specific period.

Transaction Costs

Expenses incurred when buying or selling securities, including commissions, taxes, and other fees.