I'm going with C) Lack of credible market leader in the industry. Without a strong industry leader to set the pace, companies may be hesitant to invest in capacity expansion. But hey, at least I'm not picking 'diversification' as a limiting factor!
D) Company diversification? Really? I'm pretty sure that's more of a strategy to expand capacity, not a limiting factor. Some candidates need to brush up on their operations management concepts.
I think A) Government pressure on organizations to increase or maintain employment is also a valid limiting factor. Governments often interfere with business decisions to protect jobs, which can hinder capacity expansion.
The correct answer is B) Production orientation of management. This is a classic limiting factor for capacity expansion, as management may be too focused on production rather than market demands.
I see your point, Keneth. But I think D) Company diversification can also be a limiting factor. If a company is too diversified, it can spread resources thin and hinder capacity expansion.
Darrin
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