Which of the following, if true, weakens the CEO’s position? A) The i

QUESTION

Which of the following, if true, weakens the CEO’s position?

A) The iffy reputation of the area in which the strip mall is located would make the business’s current employees uneasy about their safety at work, which would lead to increased turnover in staff.
B) The lower cost of living in the new neighborhood would make it easier to hire employees willing to accept lower salaries.
C) Video games sales, after several years of increases, have reached a plateau and are unlikely to show further growth in the next few years.
D) The strip mall has no other current vacancies.
E) The current staff has been stable for several years and is well versed in details of video games and other specialty items.

ANSWER

Answer: A
Explanation: A) Two of the key human resource management responsibilities of a small business are maintaining morale and protecting employees’ physical conditions. When these issues are neglected, turnover increases, leading to the need to hire and train new staff more often than necessary. Hence Choice A weakens the CEO’s position. Conversely, Choice B might strengthen the decision by showing that labor costs can be controlled through the move. Choice C might be a consideration if the business sold only video games, but, in fact, this is just one product line the firm handles. Choice D, if anything, strengthens the CEO’s position by suggesting that the strip mall is being effectively managed by its owners. Choice E deals with a strength of the company in its existing location but does not address the wisdom of the move.