The Process of Reducing, Usually Dramatically, the Number of People

question 52

Multiple Choice

The process of reducing, usually dramatically, the number of people employed by the firm is referred to as which of the following?

• A) Division of work
• B) Reengineering
• C) Downsizing
• D) Job specialization
• E) Mass layoffs

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Definitions:

Credit Sales

Credit sales are transactions where the buyer is allowed to pay for goods or services at a later date, extending credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks in return for loans or as part of a service agreement.

Effective Interest Rate

The actual interest rate on a loan or investment, taking into account the effect of compounding, fees, and other factors, more accurately reflecting the true cost or yield than the nominal rate.