Instructions

Read the following caselet and answer the questions that follow:

The Public Relations Department of an organization has spent only 4 crores of its allocated 16 crores on publicity. There are 2 months left in the financial year. Due to shortage of officers, the Assistant Director, Operations has been given an additional charge of publicity. Because of his other commitments, he is unable to find time to undertake tasks such as baseline study, ascertaining communication needs, testing proposed messages and media channels, deciding optimum periodicity, measuring impact, etc. He also argues spending the rest of the budget is unnecessary because their regular programs are already widely known. His boss, the Director, however, feels that only by utilizing the entire budget can a similar amount be demanded the next year. He also thinks that there is nothing like enough publicity.

Question 32

Which of these new developments, if true, would most justify a larger utilization of the advertising budget?

Solution

The Public Relations Department has spent only 4 crores of its allocated 16 crores on publicity. There can be very little justification for any increase in advertising budget. However, if the organization has a new major scheme for immediate implementation, it would require substantial publicity. This can be the only reason for an increase in the advertising budget. The other alternatives do not provide a valid reason for the increase.

Hence, the correct answer is option C


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