Crescendo Inc. distributes musical and band instruments nationwide. Reductions in high school musical programs and the economic recession have led to a sharp downturn in sales. Because of this, a salary freeze has been in effect for three years and increases in supplementary health care premiums have cut into workers' take-home pay. Nevertheless, the firm has avoided layoffs, the workforce has experienced minimal turnover, and the firm has lost only a handful of employees, mostly for health reasons. The CEO considers this continuity of the workforce a healthy sign, but the human resources director is less sanguine. She feels that the workplace culture is becoming inbred and too focused on maintaining job security rather than looking for ways to be truly engaged in the company's goals. Which of the following, if true, would most support the CEO's position that the firm is basically healthy?
A) Sales have declined proportionally less than those of Crescendo's competitors.
B) Supervisors report few complaints coming from their subordinates.
C) With the economy improving, the firm is beginning to turn a profit.
D) It has been easy to replace the positions that have come open.
E) The company has always rewarded its top performers in each division.

Question

Quizplus · Accepted Answer

The fact that sales have declined proportionally less than competitors suggests that Crescendo Inc. is performing relatively better in a challenging market. This indicates that the company is resilient and has a strong foothold in the industry despite the downturn.