Identify the Similarity Between the Natural Attrition and Early Retirement

question 28

Multiple Choice

Identify the similarity between the natural attrition and early retirement strategies for reducing a labor surplus.

• A) Both strategies yield slow results for an organization.
• B) Both strategies cause high suffering to the employees of an organization.
• C) Both strategies can be applied for preventing labor shortages.
• D) Both strategies are expensive to implement.
• E) Both strategies encourage layoffs.

---

Definitions:

Sales Increase

A rise in the quantity or dollar value of a company's products or services sold over a specified period.

Capacity Level

The maximum output a company can produce and sell with its current resources.

Maximum Growth Rate

The highest possible rate at which a company can expand its operations using only internal financing sources, without resorting to borrowing or issuing new equity.

Debt-equity Ratio

A metric that measures a company's financial leverage, calculated by dividing a company’s total liabilities by its shareholder equity.