If a company lays off half of its employees during a recession, what can you reasonably conclude?
Understand the Problem
The question is asking what conclusions can be drawn about a company's situation if it has to lay off half of its employees during a recession. The high-level approach would involve considering the impact of economic downturns on businesses and potential reasons for such drastic measures.
Answer
The company couldn't afford to pay the employees.
If a company lays off half of its employees during a recession, you can reasonably conclude that the company couldn't afford to pay the employees.
Answer for screen readers
If a company lays off half of its employees during a recession, you can reasonably conclude that the company couldn't afford to pay the employees.
More Information
Laying off a significant portion of the workforce typically indicates financial strain, especially during economically challenging times such as a recession.
Tips
A common mistake is assuming that layoffs indicate poor employee performance rather than financial difficulty within the company.
Sources
- Quizgecko - quizgecko.com
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