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In the question below, a statement is given 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 course of action logically follow (s) for pursuing. Statement: Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years.  Courses of action: I. Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticised Tesla's board for being too beholden to Musk.  II. The deal could remove one cloud that hangs over Tesla. Investors fretted about the company's ability to cope without Musk, a charismatic entrepreneur whose penchant for coming up with revolutionary ideas has drawn comparisons to one of Silicon Valley's most revered visionaries, Apple co-founder Steve Jobs.  III. Besides paying a fine and stripping Musk of his chairman's title, Tesla also must appoint two more directors who have no ties to the company or its management. Musk will be allowed to remain on the board.

In the question below, a statement is given 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 course of action logically follow (s) for pursuing. Statement: Tesla and its CEO Elon Musk have agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company. The settlement with the Securities and Exchange Commission allows Musk to remain CEO of the electric car company but requires him to relinquish his role as chairman for at least three years.  Courses of action: I. Tesla must hire an independent chairman to oversee the company, something that should please a number of shareholders who have criticised Tesla's board for being too beholden to Musk.  II. The deal could remove one cloud that hangs over Tesla. Investors fretted about the company's ability to cope without Musk, a charismatic entrepreneur whose penchant for coming up with revolutionary ideas has drawn comparisons to one of Silicon Valley's most revered visionaries, Apple co-founder Steve Jobs.  III. Besides paying a fine and stripping Musk of his chairman's title, Tesla also must appoint two more directors who have no ties to the company or its management. Musk will be allowed to remain on the board. Correct Answer All except II follow

A course of action is something that needs to be done considering the present scenario in mind. From the statement, it is evident that Tesla’s CEO Elon Musk is relinquishing (giving up) his role as chairman for at least three years following the lawsuit alleging Musk duped investors with misleading statements about a proposed buyout of the company.

Following the given course of actions and the statement we comprehend that following Musk’s resignation, what can be the further possible actions in this regard. Thus, the course of action (I) and (III) are relevant to the given statement thus, option 4 must be the answer choice.

Both the course of actions I and III perfectly bring out the possible actions that can be taken by Tesla following the given conditions. I and III bring out the idea of bringing some change by hiring a new Chairman and two directors respectively following the present scenario. As both of them are in the same direction as the given statement so they have to be marked as answer choices.

Course of action (II) states about the condition of investors and is no course of action and thus, it can be rejected.

Thus, the correct answer is option 4.

Related Questions

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