QUESTION
Which of the following, if true, suggests that Retepson’s culture should emphasize stability?
A) Each year that profits drop, Retepson employees do not earn any yearly bonus.
B) Currently, the Retepson brand is well-recognized and is viewed positively by college-bound seniors who do not buy books like the Guide to Colleges line.
C) Retepson lacks the financial resources to survive any significant drop in the revenues produced by its traditional revenue sources.
D) A recent drop of funding for higher education has made colleges and universities more cost-conscious.
E) Future generations are less likely to view books as an attractive option for conducting research.
ANSWER
Answer: C
Explanation: C) Even if the core business is in trouble, it may be worth preserving, especially if Choice C is true and the company depends on that revenue to survive. Choice C makes the case for stability because any risk to the core business could be fatal to the company. Choice A says that failure has consequences, but that doesn’t tell us how to avoid failure. Choice B says that the brand has value among people who won’t buy the books, which is a reason to come up with some other product to sell. Choices D and E make the core business sound worse, which puts the emphasis away from stability.
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