Write a sentence to explain how downsizing could be related to bankruptcy.

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Answer 1

Employees lay off, including a decrease in sales volume, the closure of a facility, etc are reasons for corporation downsizes, further explained in the following paragraph.

What does it mean when a corporation downsizes?

Employees are laid off for a variety of reasons, including a decrease in sales volume, the closure of a facility, or acquisition that creates redundant positions. A number of employees' jobs are terminated in these instances due to no fault of their own.

We discovered that companies that downsized were more likely to file for bankruptcy than companies that did not decrease. We discovered that intangible resources can help downsized businesses avoid insolvency. Downsizing firms' financial and physical resources did not lessen the likelihood of insolvency.

Therefore, the above statement explains downsizing.

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