Examples include high startup costs and heavy competition. The two legal methods for a company to file for bankruptcy. Under Chapter 11, the company is allowed to continue in operation while it attempts financial restructuring and payment of debts. Under Chapter 7, the company is shut down and its assets liquidated in order to pay off its debts. A strategy of spreading risk between several markets, industries, or product lines.
Investors diversify, and thus spread risk, by choosing several different types of investments.
A program in which employees receive shares of stock in the company where they work. This transfer of stock to the employees is a form of compensation or reward that is often used by management as a source of motivation. A strategy intended to increase employees' motivation by increasing their involvement in their work. The time spent waiting to continue working on a process because of some delay or bottleneck. The amount of influence individuals have over their jobs and workplaces.