Downsizing Has an Immediate Effect on Costs,and Much of the Evidence

question 20

Multiple Choice

Downsizing has an immediate effect on costs,and much of the evidence suggests that it:

• A) improves communication.
• B) strengthens social networks.
• C) hurts long-term organizational effectiveness.
• D) increases the motivation of remaining employees.
• E) None of the choices are correct.

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Definitions:

Income Distribution

The process of dividing earnings, often in the form of dividends, to shareholders based on the number of shares they own.

Net Income

The total earnings of a company after accounting for all expenses, taxes, and costs, indicating the company's profit.

Personal Use

The use of a product or service for private, non-commercial purposes.

Capital Contributions

Investments made by owners or shareholders into a company in exchange for an increase in ownership equity or stock without the need for repayment.