Answer questions 30-32 on the basis of information given in the following situation.
Lal & Sons, a family business, comprises three different companies in three different industries. Sudarshan Lal was heading this entire business from the inception. Two years ago, he hired three managers, one for each company and Chhaganlal Jha as Chief Executive Officer (CEO) to look after the entire business. These three managers are reporting to the CEO. However, Sudarshan Lal and his family still own the entire business, though they are not involved in day to day operations.
Two years after the handing over, Sudarshan was concerned that none of the companies, except one, is profitable.
Which of the following information, if true, will most likely reduce Sudarshan's concerns?
A per the information provided in the question we need to look for a case that provides the required assurance of how the current and the future prospects may turn out.
Since a financial institution that acts as an independent researcher has a very positive outlook towards the loss-making company's prospects in the future. This provides the required assurance for not just Sudarshan but for all the key stakeholders. Hence is very crucial to understand how things stand currently for the company.
It will be appropriate that it was handed over to professionals but unless any results are provided from the professional advice this might not be significant enough to assure Sudarshan.
The huge success in one industry cannot be translated or expected to compensate for the loss in the other two industries.
We are not aware if the replaced employees are incompetent or poorly performing employees. Hence this does not hold significance in assuring the required confidence.
If people are leaving at a much higher rate compared to the industry average then this becomes a matter of concern and hence is not correct.
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