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In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow(s) for pursuing. Statement: Long-term investors may apply for the upcoming IPO of TCNS Clothing. The company’s unique positioning in the less crowded women’s wear segment, with dominant brands such as ‘W’, ‘Aurelia’ and ‘Wishful’, may attract strong interest from institutions. In the choppy markets, funds are increasingly finding more comfort with consumer companies that offer high growth visibility.  Courses of action: I. TCNS manufactures, markets and retails a portfolio of women’s branded apparel across brands ‘W’, ‘Aurelia’ and ‘Wishful’.  II. Besides, with a play on the rising spend by self-earning women, TCNS is likely to command a premium.  III. ‘Aurelia’, which has more contemporary designs, accounts for 33.7 per cent of revenues and has grown at 48 per cent, while ‘Wishful’, a premium occasion wear brand, accounts for 8.6 per cent and has grown at 40 per cent. 

In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow(s) for pursuing. Statement: Long-term investors may apply for the upcoming IPO of TCNS Clothing. The company’s unique positioning in the less crowded women’s wear segment, with dominant brands such as ‘W’, ‘Aurelia’ and ‘Wishful’, may attract strong interest from institutions. In the choppy markets, funds are increasingly finding more comfort with consumer companies that offer high growth visibility.  Courses of action: I. TCNS manufactures, markets and retails a portfolio of women’s branded apparel across brands ‘W’, ‘Aurelia’ and ‘Wishful’.  II. Besides, with a play on the rising spend by self-earning women, TCNS is likely to command a premium.  III. ‘Aurelia’, which has more contemporary designs, accounts for 33.7 per cent of revenues and has grown at 48 per cent, while ‘Wishful’, a premium occasion wear brand, accounts for 8.6 per cent and has grown at 40 per cent.  Correct Answer Neither I nor III follows

The correct answer is option 2, i.e. Neither I nor III follows, i.e. only II follows.

A course of action is something that needs to be done considering the present scenario in mind. From the statement, it is evident that long term investors might apply for the upcoming IPO (Initial public offering) of TCNS Clothing and offers high growth visibility as a result finds funds easily. From the courses of actions stated, both (I) and (III) can be rejected.

Course of action (I) states that TCNS manufacturers, markets and retails a portfolio of its competitor branded apparels and i.e. why is emerging as a high growth company. From it we can infer that it is not something that is required to be done to improve or to strengthen the present scenario. It is something that is already ongoing and is thus, not an appropriate course of action.

Course of action (III) can also be rejected as no facts and figures as such have been mentioned in the given statement. Moreover, it is not a course of action rather it is a general informative statement regarding the other two brands.

Thus, all the course of actions except (II) are irrelevant and can be rejected.

Related Questions

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