XAT 2020 Question Paper | Bussiness Decision Making
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Read the situation below and answer the associated question:
The Small Shop wants to increase the variety of products sold, including expensive ones. However, it is averse
to accumulating unsold products, specifically of the expensive kind.
Question 11: Which of the following is the BEST option if The Small Shop wants to increase the variety of the products it sells?
- The Small Shop should get suppliers to courier its requirements to the shop whenever needed. The suppliers require that The Small Shop orders a minimum quantity every month.
- The Small Shop should focus only on low-end peripherals that currently contribute to 60% of its revenues.
- The Small Shop should acquire extra space at lower rentals available at a distance of three kilometres from its current location.
- The Small Shop should focus exclusively on high-end peripherals which contribute to 10% of its revenues but 25% of its profits.
- The Small Shop should make an arrangement with a retailer of the nearest city. The shop can spare one of its employees once a week to procure the weekly requirements.
The Small Shop should make an arrangement with a retailer of the nearest city. The shop can spare one of its employees once a week to procure the weekly requirements.
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Explanatory Answer
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The question is "Which of the following is the BEST option if The Small Shop wants to increase the variety of the products it sells?"
Hence, the answer is "The Small Shop should make an arrangement with a retailer of the nearest city. The shop can spare one of its employees once a week to procure the weekly requirements."
Choice E is the correct answer.
