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A company’s sales increased, but its cash flow deteriorated and customer complaints also rose. Which conclusion about management is more mature in this situation?

Answer and explanation

Correct answer: An increase in sales alone does not prove management success

Management cannot be evaluated from a single outcome such as sales. Effective management must balance sales, cash flow, customer satisfaction and other organisational objectives. Therefore, rising sales alongside worsening cash flow and increasing complaints does not establish overall success. Option B is incorrect because it assumes complete success from only one positive indicator. Exam tip: Evaluate management by considering multiple objectives and stakeholder outcomes together.

Related tags

ManagementManagement ObjectivesOrganisational EffectivenessCase StudyObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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