Scenario 6.1 in 2003, Managers at BabyBlooms Corp., a National Retailer of Retailer

Multiple Choice

Scenario 6.1
In 2003, managers at BabyBlooms Corp., a national retailer of baby products, noticed that sales and profits were slumping.Store managers were instructed not to fill any vacant positions, which saved some money.However, by January, 2004, it was essential that BabyBlooms cut expenses further.The firm decided to offer incentives for top managers if they decided to leave before their tenure out of free will.Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of its workers (about two workers per store) .When those cuts were still not enough, management called for store closings in some locations.For example, one of the store closing was announced to employees on August 1 and accomplished by December 1.In locations where stores were not closed, managers were ordered to terminate any under-performing employees, identified by low performance appraisal scores in the last two evaluations.
-Refer to Scenario 6.1.Which of the following is more likely to be a risk associated with laying off employees of BabyBlooms Corp.?

A) ​The company is at risk of being acquired by a government owned company.
B) ​The employees who are retained tend to show less organizational citizenship behavior.
C) There are high chances for the company to go bankrupt.
D) The company has to invest large amounts to retain other employees.
E) The laid off employees have the option of suing the company for wrongful termination.