Having options in a downsizing such as buyouts and early retirements reduces the negative impact on morale and reputation.

Which of the following describes the accuracy data quality characteristic?

A) The degree to which all the required data is present in the data collection B) The extent to which the data conforms to its specified format C) The extent to which data correctly reflects the real world instances it is supposed to depict D) The extent to which the data properly conforms to and matches up with the other data

Which of the following statements is FALSE?

A) Leverage can reduce the degree of managerial entrenchment because managers are more likely to be fired when a firm faces financial distress. B) When a firm is highly levered, creditors themselves will closely monitor the actions of managers, providing an additional layer of management oversight. C) According to the empire building hypothesis, leverage increases firm value because it commits the firm to making future interest payments, thereby reducing excess cash flows and wasteful investment by managers. D) Managers of large firms tend to earn higher salaries, and they may also have more prestige and garner greater publicity than managers of small firms. As a result, managers may expand (or fail to shut down) unprofitable divisions, pay too much for acquisitions, make unnecessary capital expenditures, or hire unnecessary employees.