If a Business Is Downsizing,it Is Most Likely

question 99

Multiple Choice

If a business is downsizing,it is most likely:

• A) offering training and development opportunities to new hires.
• B) improving worker efficiency through reorganization.
• C) reducing the size and scope of the business.
• D) offering early retirements to older workers.

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Definitions:

Adverse Selection

A situation in economics where one party in a transaction has more or better information compared to the other party, potentially leading to an inequitable outcome.

Unobservable Characteristics

Traits or factors not immediately apparent or measurable that can influence outcomes or decisions.

Unobservable Actions

Actions taken by individuals or entities that cannot be directly observed or monitored, often leading to issues of information asymmetry.

Moral Hazard

A situation in insurance and economics where one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetric information.