Each item describes a situation followed by four possible answers. Indicate the answer you find most appropriate.
Select only one answer for each item. Responses will be evaluated based on their level of appropriateness to the given situation.
Shruti runs a successful online business. She has been offered a partnership by a large company that wants to acquire 60% of her brand.
While the financial benefits are high, she will lose significant control in decision-making. Her brand is based on personal connection and customer trust. What is the best course of action?
Show answer & explanation
Correct answer: C
Explanation
1) Accept immediately for financial gain
This may cause Shruti to lose control of her brand, which is risky.
2) Decline completely
She might miss a good growth opportunity.
3) Negotiate for a smaller stake and partial control
Option C suggests negotiating for a smaller stake so Shruti can get investment and still keep some control over decisions. This protects her brand while also allowing business growth
4) Close the business
This is unnecessary because the business is already successful
Therefor, option (3) is the correct answer.