Downsizing Tends to Have a Positive Effect on Stock Prices

question 168

True/False

Downsizing tends to have a positive effect on stock prices and profitability.

---

Definitions:

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Future Goods

Products or services that are not yet manufactured or provided but are planned for future sale.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Market Rate

The prevailing price determined by supply and demand in the open market for services or commodities.