Direction: In each of the questions given below a statement is given that is followed by three courses of actions numbered I, II, and III. A course of action is a step or administrative decision to be taken for improvement, follow up or further action in regard to the problem , policy etc. On the basic of information given in the statement, you have to assume everything in the statement to be true. Then decide which of the three given suggested course (s) worth pursuing. Then, decide which of the alternatives (a), (b), (c) is correct?
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Statement
The company X has rejected first lot of valves supplied by company A and has cancelled its entire huge order quoting use of inferior quality material and por craftsmanship.
Courses of Action
I. The company A needs to investigate functioning of its purchase, production and quality control departments.
II. The company A should inspect all the valves rejected by company X.
III . The company A should inform X that steps have been taken for improvement and renegotiate the schedule of supply.
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- I and II follow
- Only II follows
- II and either I or III follow
- All I, II and III follows
Correct Option: D
Company A should inspect the rejected valves to ensure, if they are really substandard. If yes, it should scrutinise its working throughly and remove its lackings. Company A should inform company X that steps have been taken for improvement and renegotiate the schedule of supply.
