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    Question

    A statement is given followed by two courses of action I and II. Analyse the given situation and select the appropriate course of action.

    Statement: The UK government owned airline British Air has been continuously making losses for the past several years with no signs of profits anytime soon.

    Course of Action:     

    I. The UK government should provide a bailout package to the airline to ensure that it does not collapse.

    II. The government should take necessary measures to ensure that the airline improves its productivity and reduces wasteful expenditure.

    A Only I follows Correct Answer Incorrect Answer
    B Only II follows Correct Answer Incorrect Answer
    C Either I or II follows Correct Answer Incorrect Answer
    D Neither I nor II follows Correct Answer Incorrect Answer

    Solution

    Providing a bailout package would be similar to throwing good money after bad. If the airline cannot become profitable, it might be a better idea for it to shut down. Thus, course of action I does not follow.   Necessary measures must be taken to try and make the airline profitable by cutting excess expenditure and improving efficiencies. Thus, course of action II makes sense.   Hence, the correct answer is (B).

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