Clarita Cosmetics Is Confronting a Decline in Sales Due Largely

Multiple Choice

Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn.The top management team is debating whether to lay off employees.Which of the following statements made during the debate is false?

A) If Clarita Cosmetics lays off a large number of employees, a significant loss of human capital will cause further downturns in the firm's performance.
B) A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance.
C) If Clarita Cosmetics restructures, it ought to increase investments in training and development.
D) A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks.