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Question
Statement I: Red tape and bureaucracy do not permit quick decisions and prompt action.
Statement II: The management of a company is supposed to be carried on according to the collective will of its members.
Options
Only I is correct.
Only II is correct.
Both I and II are wrong.
Both I and II are correct.
MCQ
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Solution
Both I and II are correct.
Explanation:
Statement I is correct because red tape and bureaucracy often lead to delayed decision-making and slow action in some businesses, particularly in larger, more formal organisations.
Statement II is also correct because a company’s management is carried out based on its members collective will, usually through a board of directors who represent shareholders.
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