Multiple choice

Directions: In the question, a statement is followed by two courses of action numbered I and II. Assume everything in the statement to be true, and decide which of the suggested courses of action logically follow(s) for pursuing.

Statement: The board of directors of company 'K' has decided in principle to wind up or sell off its business in all but not in core competency areas. Courses of action: I. The top management will have to first identify core competency areas of its operation. II. The top management will have to identify and shift its best people from core competency areas to non-core areas.

  1. Only I follows.

  2. Only II follows.

  3. Neither I nor II follows.

  4. Both I and II follow.

  5. Either I or II follows.
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A Correct answer
Explanation

The first statement is a logical step. Only after identifying the core competency areas can they be retained. The second statement is not logical. As company is going to continue its business in core competency areas, the best people would be required there.

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