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Adelint Inc, a retail store chain, had been incurring high costs and hence downsized its workforce to increase its profits. However, the company's business grew over the next six months, and it had to recruit many new employees. The company hence ended up incurring the usual high infrastructure costs as well as the cost for recruiting the new employees. Instead of downsizing its workforce,
asked Aug 22, 2017 in Business by Brandy
Adelint Inc could have _____
A) rightsized its workforce.
B) outsourced its work.
C) invested in plant and machinery.
D) reduced its fixed assets.

Respuesta :

Answer:

D. reduced its fixed assets.

Explanation:

In business, fixed assets include wide variety of tangible assets that company use for a long period of time.  (such as building rent, machines, land, etc)

In order to cut down its expense, business could choose between cutting down the cost from fixed assets or cutting down the cost of labors.

If being done correctly, cutting down fixed assets can actually be more efficient still it wouldn't affect company's productivity as much as reduction in labors.

The company can do this by renting a cheaper place of their operation, minimizing the waste of energy when using their utilities, or opting on buying secondhand machinery that still run properly.

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