Company X experienced a sharp decrease in profitability last year. The CEO believes that the best way to increase profitability is to fire 20 employees. The CFO, on the other hand, believes that no employees should be fired, but that all employees should take a salary cut.Which of the following, if true, would contribute most to the CFOs claim?a)There are currently 35 employees in Company X.b)Firing 20 employees will lower the companys expenses by more than 30 percent.c)The average salary in Company X is significantly lower than that of its competitors.d)The workload in Company X has been gradually increasing over the past few years.e)If salaries are lowered, employee morale and, consequently, productivity will suffer.Correct answer is option 'D'. Can you explain this answer?

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Which of the following, if true, would contribute most to the CFO's claim?

a)
There are currently 35 employees in Company X.
b)
Firing 20 employees will lower the company's expenses by more than 30 percent.
c)
The average salary in Company X is significantly lower than that of its competitors.
d)
The workload in Company X has been gradually increasing over the past few years.
e)
If salaries are lowered, employee morale and, consequently, productivity will suffer.

Correct answer is option 'D'. Can you explain this answer?

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Company X experienced a sharp decrease in profitability last year. The...

The scenario given is that Company X experienced a sharp decrease in profitability, and the CEO believes that firing 20 employees is the best way to increase profitability. The CFO disagrees and suggests that all employees should take a salary cut instead. The question asks us to find the answer choice that would most support the CFO's claim.

Let's evaluate each answer choice:

(A) There are currently 35 employees in Company X.

This answer choice provides information about the current number of employees in the company but does not directly relate to the CFO's claim about salary cuts. It does not provide substantial support for the CFO's argument. Therefore, this option can be eliminated.

(B) Firing 20 employees will lower the company's expenses by more than 30 percent.

While this answer choice does provide support for the CEO's claim that firing employees would decrease expenses, it does not directly contribute to the CFO's claim that all employees should take a salary cut. Therefore, this option is not the most relevant to the CFO's claim.

(C) The average salary in Company X is significantly lower than that of its competitors.

This answer choice provides information about the average salary in Company X compared to its competitors. While it may provide some context about the company's salary structure, it does not directly support the CFO's claim that all employees should take a salary cut. Therefore, this option is not the most relevant to the CFO's claim.

(D) The workload in Company X has been gradually increasing over the past few years.

This answer choice is the most relevant to the CFO's claim. If the workload in Company X has been gradually increasing over the past few years, it suggests that the company may be asking more from its employees without additional compensation. This information strengthens the CFO's argument that all employees should take a salary cut instead of firing employees. It suggests that reducing salaries would be a more fair and equitable solution, rather than putting the burden solely on a specific group of employees through layoffs. Therefore, option (D) is the most relevant and supports the CFO's claim.

(E) If salaries are lowered, employee morale and, consequently, productivity will suffer.

This answer choice raises a valid concern about potential negative consequences of lowering salaries, such as reduced employee morale and productivity. While it is an important consideration, it does not directly support the CFO's claim for all employees to take a salary cut instead of firing employees. Therefore, this option is not the most relevant to the CFO's claim.

In conclusion, option (D) is the answer choice that would contribute most to the CFO's claim, as it supports the argument that all employees should take a salary cut by highlighting the increasing workload without additional compensation.

Answered by Talent Skill Learning · View profile

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Company X experienced a sharp decrease in profitability last year. The CEO believes that the best way to increase profitability is to fire 20 employees. The CFO, on the other hand, believes that no employees should be fired, but that all employees should take a salary cut.Which of the following, if true, would contribute most to the CFOs claim?a)There are currently 35 employees in Company X.b)Firing 20 employees will lower the companys expenses by more than 30 percent.c)The average salary in Company X is significantly lower than that of its competitors.d)The workload in Company X has been gradually increasing over the past few years.e)If salaries are lowered, employee morale and, consequently, productivity will suffer.Correct answer is option 'D'. Can you explain this answer?

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Company X experienced a sharp decrease in profitability last year. The CEO believes that the best way to increase profitability is to fire 20 employees. The CFO, on the other hand, believes that no employees should be fired, but that all employees should take a salary cut.Which of the following, if true, would contribute most to the CFOs claim?a)There are currently 35 employees in Company X.b)Firing 20 employees will lower the companys expenses by more than 30 percent.c)The average salary in Company X is significantly lower than that of its competitors.d)The workload in Company X has been gradually increasing over the past few years.e)If salaries are lowered, employee morale and, consequently, productivity will suffer.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Company X experienced a sharp decrease in profitability last year. The CEO believes that the best way to increase profitability is to fire 20 employees. The CFO, on the other hand, believes that no employees should be fired, but that all employees should take a salary cut.Which of the following, if true, would contribute most to the CFOs claim?a)There are currently 35 employees in Company X.b)Firing 20 employees will lower the companys expenses by more than 30 percent.c)The average salary in Company X is significantly lower than that of its competitors.d)The workload in Company X has been gradually increasing over the past few years.e)If salaries are lowered, employee morale and, consequently, productivity will suffer.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Company X experienced a sharp decrease in profitability last year. The CEO believes that the best way to increase profitability is to fire 20 employees. The CFO, on the other hand, believes that no employees should be fired, but that all employees should take a salary cut.Which of the following, if true, would contribute most to the CFOs claim?a)There are currently 35 employees in Company X.b)Firing 20 employees will lower the companys expenses by more than 30 percent.c)The average salary in Company X is significantly lower than that of its competitors.d)The workload in Company X has been gradually increasing over the past few years.e)If salaries are lowered, employee morale and, consequently, productivity will suffer.Correct answer is option 'D'. Can you explain this answer?.

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