Which of the following questions is most relevant to Retepson’s decisi

QUESTION

Which of the following questions is most relevant to Retepson’s decisions with respect to the viability of its business model?

A) Does Retepson currently have high market share or low market share in the industries in which it competes?
B) Has Retepson been profitable throughout its history?
C) Would the profit margins of any new businesses be higher or lower than current profit margins?
D) To what extent will college students be likely to choose books to get information about colleges?
E) Are people who bought Retepson books in the past likely to buy new editions of those books after they leave college?

ANSWER

Answer: D
Explanation: D) Retepson is concerned that its entire business model won’t work given advancements in technology. To answer that question, it needs to look outside issues related to its current business, which eliminates Choices A, B, and C. The essential issue is whether people will want to buy those books, because if they don’t, then no one will be interested in advertising in them, either. So Choice D gets at the most important issue. Choice E doesn’t help because it makes no sense to try to sell new versions of college guides to people who no longer need them.