700 level question

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700 level question

by rushi5656 » Thu Jul 16, 2020 5:56 am

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A

B

C

D

E

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Last year Company X experienced an unexpectedly steep drop in profits. To offset this loss, Company X should reduce its workforce by 10%. Doing so will allow the company to save a great deal in payroll expenditures. Company X will therefore be able to recoup its losses.

The argument above assumes that


A. The amount saved in payroll expenditures will exceed the amount lost in profits.

B. The amount saved in payroll expenditures will equal the amount lost in profits.

C. Reducing Company X's workforce will not cause the company to reduce productivity.

D. Company X has no reserve funds to offset its losses.

E. Company X has not at sometime in the past reduced its workforce