Question

Directions: In the question below is given a statement followed by two courses of action numbered I and II. You have to assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the suggested course of action logically follow(s) for pursuing.

If a company is incurring a huge losses due to many competitors in the market.

Which of the following statements is a viable course of action?

I. Company should offer a huge discount on all its product and attracts customers.

II. Increase productivity of your staff recognize and reward staff contributions with staff performance reviews, and teach them sales skills

1. Only I follows.
2. Only II follows.
3. Both I and II follow.
4. Neither I nor II follows.
5. Either I or II follows.

Answer 1

Correct Answer - Option 2 : Only II follows.

Given Statement : The statement suggests that If a company is incurring a huge losses due to many competitors in the market.

Course of action I Company should offer a huge discount on all its product and attracts customers. This will not benefit at all because there is no guarantee that customer will come after giving huge discount and this may cause a huge loss. Therefore, course of action I is illogical and it does not follow.

Course of action II Increase productivity of your staff recognize and reward staff contributions with staff performance reviews, and teach them sales skills. This is the best way for the company to increase productivity. Therefore course of action II is logical and it follows.

Hence, Only II follows.