Discussion
Statement: Since its launching in 1881, Kitchens Ltd has so far accumulated losses amounting to Sterling 100 000.
Courses of Action:
1. Kitchens Ltd should be directed to reduce wasteful expenditure and to increase sale prices.
2. An amount of about Sterling 200 000 should be provided to Kitchens Ltd to make the company economically viable
Answer: A
Correct answer: Only I follows
Course 1 goes to the cause: a company that has been losing money must cut waste and price its goods properly. Course 2 would simply pour more money into a company that has shown it cannot use money well, which does not address the loss at all. Only I follows.
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