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Statement: The sale of a particular product has gone down considerably causing great concern to the company.

Courses of Action:

1. The company should make a proper study of rival products in the market.

2. The price of the product should be reduced and quality improved.

  • A.Only I follows
  • B.Only II follows
  • C.Either I or II follows
  • D.Neither I nor II follows
  • E.Both I and II follow

Answer: A

Correct answer: Only I follows

Course 1 is the sensible first step: find out why sales have fallen by studying what the rivals are offering. Course 2 prescribes a cut in price and a rise in quality before the cause is even known, and doing both at once may only deepen the loss. Only I follows.

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