Bachelor of General Studies (BGS) Degree Practice Exam

What characterizes a reactive company's approach to management issues?

1. They proactively seek solutions

2. They anticipate issues before they arise

3. They respond only when compelled to act

4. They create long-term partnerships with stakeholders

The correct answer is: They respond only when compelled to act

A reactive company's approach to management issues is characterized by their tendency to respond to problems only when they are forced to do so. This means that they often wait until an issue arises or escalates before taking any action. In this context, management is more focused on addressing immediate concerns rather than implementing strategies to prevent potential problems from occurring in the first place. Such an approach can lead to a cycle of crisis management, where the company is constantly in a state of addressing issues rather than fostering growth or stability. In contrast, the other choices represent proactive behaviors. For instance, proactively seeking solutions and anticipating issues demonstrate a foresighted approach, while establishing long-term partnerships with stakeholders reflects a commitment to collaboration and preemptive planning, neither of which align with a reactive management style. Therefore, the emphasis on responding only when compelled to act distinctly highlights the nature of a reactive company.