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Which restructuring driver is in place when a company is experiencing a reduction in revenue?

A. Strategy
B. Downsizing C. Structure D. Expansion

1 Answer

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Final answer:

Downsizing is the restructuring driver in place when a company faces a revenue decrease, often leading to layoffs or factory closures to cut costs. Option B is correct.

Step-by-step explanation:

When a company is experiencing a reduction in revenue, the restructuring driver typically in place is downsizing. Downsizing involves reducing the number of employees and is often a strategy used by companies to save money during challenging financial periods. It can be the result of various activities like laying off employees, closing factories, or merging departments to eliminate redundancy after a merger or acquisition.

The restructuring driver that is in place when a company is experiencing a reduction in revenue is downsizing. When a company's revenue decreases, it may need to reduce costs and streamline its operations to maintain profitability. One way to achieve this is through downsizing, which involves reducing the number of employees, closing facilities, and eliminating non-essential functions within the organization. By downsizing, the company aims to cut expenses and improve its financial performance.

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