Question

When financial services companies undertake layoffs, the most valuable employees, whom the companies want to retain, often leave the company voluntarily for new jobs not long after the layoffs. ITEL Financial Services, however, has not lost any of its most valuable employees despite multiple layoffs in the past decade. ITELcredits its success in keeping valuable employees to its high tolerance for risk when employees make investment decisions.

Which of the following, if true, most strongly supports ITEL’s reasoning as to why the company retains its most valuable employees?
(A) People in the financial services industry are often motivated to change jobs by a significant salary increase.
(B) The way in which layoffs are handled can have a significant upward or downward impact on the morale and company loyalty of the employees who remain.
(C) Layoffs often occur during industry downturns, and it is generally much more difficult to find a new job when the industry is struggling.
(D) It is difficult to develop an objective method or definition for determining who should be considered a very valuable employee.
(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful

Answer 1

(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful

Step-by-step explanation:

Option E describes the justification of why ITEL most valuable employees have decided to remained to continue with a particular firm considering the situation of an economic downturn.

Thus, given that, the ITEL satisfies this justification or standards which implies maintaining a high tolerance for risks, hence the correct answer is option E, as it helps us to reinforce or bolster ITEL's understanding.

Therefore option E is the correct answer.