If Firms Believe That a Downturn in Sales and Output

question 327

Multiple Choice

If firms believe that a downturn in sales and output is temporary and that increased output will be needed in the future, they may choose to

• A) fire all their workers.
• B) sell off the plant.
• C) close a plant permanently.
• D) reassign their workers to different jobs.

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Definitions:

Colony

A territory under the immediate political control of a state, distinct from the sovereign territory of that state.

Joint Chiefs of Staff

A body of senior uniformed leaders in the United States Department of Defense who advise the President, the Secretary of Defense, and the National Security Council on military matters.

Korea

A peninsula in East Asia, divided into North and South Korea, each with distinct governments and systems.

Strategic Value

The importance or utility of something in achieving a plan, goal, or objective, especially in a competitive or challenging environment.