A Downsizing Strategy at Archer Corp

question 62

Multiple Choice

A downsizing strategy at Archer Corp.has resulted in negative stock returns and lower profitability following the layoffs.According to your text,which of the following best explains the reason for these negative results at Archer?

• A) Downsizing tends to eliminate good performers instead of poor performers first.
• B) Downsizing demands the HR department have a third-party vendor provide services,which results in lower revenues.
• C) Downsizing conducts a complete review of the organization's critical work processes,which results in heavy expenditures.
• D) The HRM of a firm must provide downsized employees with multiple stock options.
• E) When labor costs fall after a downsizing,sales per employee also tend to fall.

---

Definitions:

Examining Table

A piece of equipment in healthcare settings designed for patients to sit or lie on during medical examinations or procedures.

Biohazardous Waste Container

A leakproof, puncture-resistant container, color-coded red or labeled with a biohazard symbol, that is used to store and dispose of contaminated supplies and equipment.

Paper Coverings

Disposable sheets or covers, often used in medical settings to maintain hygiene and prevent cross-contamination.

Body Fluids

Liquids within humans and other living organisms that include blood, saliva, semen, and lymph, responsible for transporting nutrients, oxygen, and waste products.