A Ryan vice president argues that the company would be better off by p

QUESTION

A Ryan vice president argues that the company would be better off by pursuing a policy of internal expansion. Which of the following, if true, strengthens his position?

A) Ryan’s management and employees are currently embroiled in a contentious labor dispute.
B) Mergers in the automotive industry peaked in the 1930s.
C) External expansion often results in companies consolidating operations and reducing costs.
D) Ryan recently had a group of top managers leave after a salary dispute.
E) Ryan has access to a line of credit that allows it to increase its capital investment in its production facilities.

ANSWER

Answer: E
Explanation: E) Increasing capital investment is a viable way to pursue internal expansion, so access to the necessary funds strengthens the vice president’s argument. Ongoing labor (Choice A) or management (Choice D) issues suggest the company is not ready for internal expansion. Choice B is not relevant to Ryan’s current situation, and Choice C argues for external rather than internal expansion.