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An organisation earns profit but keeps no reserve for future risk. Which organisational aspect may become weak?

Answer and explanation

Correct answer: Long term survival

Direct answer: Option A is correct. Survival means the organisation can continue operating in the future, even when risks, competition or unexpected expenses arise. Profit is not useful only for immediate distribution; some of it can strengthen reserves, replace assets, manage emergencies and support future operations. Here the organisation earns profit but keeps no reserve. Thus, one important support for long-term survival is weak. Option A is correct because risk preparation and financial reserves are directly related to long-term survival. Option B is wrong because employee respect concerns human treatment, not mainly financial preparation for risk. Option C is wrong because community service concerns society and is not the direct issue here. Option D is not a standard organisational objective and has no connection with reserves. The conclusion says survival may become weak, not that failure is certain. Memory cue: profit today plus preparation for tomorrow supports survival.

Related tags

SurvivalRisk-ReserveProfit

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