Question

If a company hires too many employees and discovers later that it can't afford them, it may have to do what?

Answer 1

It would be D. Lay off Employees

Answer 2

The correct answer is D. Lay off employees

Explanation:

In companies, employees are individuals that receive payment and benefits in exchange for completing certain tasks or work for the company. Employees are one of the most important elements in companies because without them companies would not have profits or achieve their purposes. Despite this, companies need only the number of employees they can afford and are necessary for company purposes.

Due to this, if there are more employees the company can afford and this affects negatively the finances of the company, the most simple is to fire or lay off employees leaving only necessary employees. This is a difficult decision because it affects negatively those being hired, but it is necessary to avoid the company bankrupting.