XAT 2018 Question Paper | Business Decision Making

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Question 10 : Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices?

1. Fire Bhushan, blacklist Dev and Sons and inform the press.
2. Issue a press statement that a committee has been formed to look into the matter.
3. Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.
4. Cancel the remaining order and call for a fresh tender.
5. Do nothing, as Bhushan, as the head of procurement, has the right to decide on the supplier.

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Explanatory Answer

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The question is "Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices? "

Hence, the answer is Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.

Choice C is the correct answer.