ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Be making lots of money
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Be buying lots of new equipment
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Be sacking staff, cutting costs and avoiding spending money
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Be hiring more workers
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Detailed explanation-1: -Cost cutting refers to measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures are typically implemented during times of financial distress for a company or during economic downturns.
Detailed explanation-2: -It creates a negative impact on the motivation level of employees. The effects on employees are either direct, because people might be losing their jobs or have to use fewer resources in their work, or indirect because employees might now regard their employer more negatively or become less engaged and productive.
Detailed explanation-3: -Why is reducing costs good for a business? Reducing costs increases the funds available within the company. This can translate directly to increased profits and therefore dividends to shareholders, or could free up working capital to fund expansion or growth of the company.
Detailed explanation-4: -Go remote. Be financially transparent and track expenses. Exchange services and barter with other businesses. Tie employee incentives to results. Hire quick and retain the best. Switch to cloud-based tools and services. Negotiate discounts on operating expenses. More items