Final answer:
The new owners did not improve the company by reducing employee benefits, as this does not align with actions like investing in technology and human capital that are typically regarded as improvements.
Step-by-step explanation:
When the new owners (Hal, Charles, and Mercedes) took over a company, they might take various actions to improve the business. According to the provided information, actions such as investing in technology, expanding or reducing production, setting prices, opening or closing factories or sales facilities, hiring or laying off workers, and starting or stopping the sale of products can be among the strategies to improve a company. These choices typically aim to enhance human and physical capital while offering incentives in a market-oriented economic context. Expansion of marketing efforts could be part of this strategy. However, reducing employee benefits would not normally be considered an improvement from the perspective of human capital investment. Therefore, the answer to the question would be (C) Reduced employee benefits as it is not a strategy that aligns with improving the company through investment in human and physical capital.