Exam IIA-CIA-Part3 All QuestionsBrowse all questions from this exam
Question 32

Which of the following is a limiting factor for capacity expansion?

    Correct Answer: A

    Government pressure on organizations to increase or maintain employment can be a limiting factor for capacity expansion. This is because such pressure can enforce regulations or mandates that restrict the ability of a company to scale up its operations. For instance, a company may face restrictions on automating processes or laying off workers even if it would be more efficient, which can hinder its overall capacity to expand production.

Discussion
Knot_TheoryOption: D

I reasoned through this one as follows - A - wouldn't be a problem if expansion is the goal expansion will require more employees not less B - Seems like kind of a nonsense answer, if management can be described as being or having "production" orientation that seems like a good thing for expansion C - Also nonsense, if there's no leader in the industry, doesn't that just leave room for someone to become one, which bodes well for expansion I picked D because if a company is trying to make many different kinds of products, it has to make more of some and less of others which means resources are limited for each product, limiting expansion, or possibly it's referring to the fact you can only sell so many of a given product because there's only so much need for any single product so to expand you have to figure out how to diversify. Not sure either of those is what they meant but I got the right answer.

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explain

DomiiiOption: A

The correct answer is A. Government pressure on organizations to increase or maintain employment. This option describes a limiting factor for capacity expansion as government policies or pressures can restrict organizations from expanding their capacity if it affects employment levels

CrazyhydraOption: B

I dont think D is correct. Option B seems to be more reasonable.

5016636409Option: D

i dont understand well why D, but after elimination process, D is only option left. :)