If an organisation is unable to cover its expenses which objective will be affected the most?

Correct answer: Survival

The direct answer is A, Survival. If an organisation cannot cover its expenses, it may be unable to pay wages, suppliers, rent, interest or other necessary costs. Continued inability to meet expenses can force the organisation to stop operations, so its existence is threatened first. Step by step: expenses must be paid for regular operations; the organisation cannot cover them; cash and financial stability become weak; continuing operations becomes difficult; therefore survival is the most directly affected objective. Option A, Survival, is correct because it means remaining in existence and continuing business activity. Option B, Employee promotion, is wrong because promotion is a personnel matter and may be postponed, while the immediate problem is whether the organisation can continue at all. Option C, Community service, is wrong because community service is a social objective and is not the first direct consequence of unpaid operating expenses. Option D, Customer entertainment, is wrong because entertainment is not a core organisational objective and has no necessary connection with meeting expenses. The organisation may also later suffer in growth and employee welfare, but the most basic and immediate danger is survival. Memory cue: when income cannot meet essential costs, think “survival at risk.”