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If a company is downsizing, what is the likely effect?

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Question: If a company is downsizing, what is the likely effect?

Options:

  1. A. Hiring more employees
  2. B. Reducing the number of employees
  3. C. Expanding the business
  4. D. Increasing salaries

Correct Answer: B. Reducing the number of employees

Solution: 

Downsizing typically means reducing the number of employees.

If a company is downsizing, what is the likely effect?

Practice Questions

Q1
If a company is downsizing, what is the likely effect?
  1. A. Hiring more employees
  2. B. Reducing the number of employees
  3. C. Expanding the business
  4. D. Increasing salaries

Questions & Step-by-Step Solutions

If a company is downsizing, what is the likely effect?
  • Step 1: Understand that downsizing means a company is reducing its size.
  • Step 2: Recognize that this usually involves laying off employees.
  • Step 3: Consider that fewer employees can lead to cost savings for the company.
  • Step 4: Think about how this might affect the remaining employees, who may have to take on more work.
  • Step 5: Acknowledge that downsizing can impact company morale and productivity.
  • Downsizing – The process of reducing the number of employees in a company, often to cut costs or improve efficiency.
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