When a company starts to decline, the first step is to ________.
A)file bankruptcy
B)seek more investors
C)retrench
D)stabilize

Question

Quizplus · Accepted Answer

When a company starts to decline, the best step is to retrench, which means to cut back on expenses by reducing staff, resources, or operations. This can help the company reduce costs and focus on its core business activities, which can help stabilize the company and improve its financial position. Filing bankruptcy should only be considered as a last resort, and seeking more investors may not be feasible or effective if the company is already in a decline.

When a Company Starts to Decline, the First Step Is