Reorganizing in Order to Compete Better May Require a Business

question 292

True/False

Reorganizing in order to compete better may require a business to reduce its labor force.
Companies reorganize in order to be more competitive and reduce costs.In order to reduce costs,the firm may reduce its labor force,and reorganize the jobs and activities to those workers who remain.

---

Definitions:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering investors a relatively safe investment option compared to other securities.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a country's central bank.

Reserve Requirement

This is a regulation set by central banks requiring banks to hold a certain percentage of deposits and notes in reserve, either in their vaults or on deposit with the central bank, as a precaution against bank runs.

Actual Reserves

The total amount of funds that a bank has in its reserve account plus any cash on hand, used to satisfy central bank requirements and handle withdrawals.