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A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.
The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.
The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.
The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.
Which of the following could be a probable reason for the Chairman to reprimand the CFO?
  • a)
    The CFO did not explain the exact nature of the financial crisis to all the other employees.
  • b)
    The CFO misinterpreted the exact dimensions of the financial crisis.
  • c)
    The CFO could have consulted the Chairman before taking any decisions
  • d)
    The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A major telecom company recently hired a new Chief Financial Officer ...
Here, the decision by the CFO appears to be flawed because he made a blanket rule, which though useful in the short term, would not have yielded long term gains. Options 1 and 2 are misleading as the decision for restructuring the finances appears to be correct, but its implementation is being questioned. Options 3 are impractical. The CFO was given a mandate and it is his job to implement it, not the Chairman’s. Option 4 is the most plausible course of action to take to maintain healthy finances as well as good client relations. Hence, the correct answer is option 4.
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Community Answer
A major telecom company recently hired a new Chief Financial Officer ...
Understanding the Chairman's Reprimand of the CFO
The Chairman's decision to reprimand the CFO can be attributed to several critical factors, primarily focused on the implementation of financial strategies during a crisis.
1. Lack of Flexibility in Decision-Making
- The CFO's rigid approach to terminating services for defaulting clients failed to consider the nuanced relationships that had been established.
- Implementing a blanket policy without assessing individual client circumstances can damage long-term partnerships.
2. Importance of Client Relationships
- The telecom industry thrives on strong client relationships, especially with major corporate clients.
- The abrupt termination of services ignored the potential fallout and the impact on the client's business, leading to severe repercussions.
3. Need for Collaborative Management
- By not consulting with regional managers and account managers, the CFO overlooked valuable insights that could have informed a more balanced decision.
- A collaborative approach would have allowed for tailored solutions that considered both financial constraints and client relations.
4. Opportunity for Case-by-Case Assessment
- The CFO could have implemented decisions on a case-by-case basis, allowing managers to negotiate terms with clients facing hardships.
- This would have shown empathy and retained client trust while still addressing the need for timely payments.
Conclusion
In summary, the Chairman's reprimand stemmed from the CFO's failure to navigate the complexities of client relationships during a financial crisis. A more flexible, consultative approach would have been beneficial, reinforcing the need for strategic alignment with client management practices.
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Group QuestionAnswer the following question based on the information given below.A major telecom company recently hired a new Chief Financial Officer to take command of the companys finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manger merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his companys business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his companys image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairmans action in spite of protests by some senior directors who defended the CFO and the Regional Managers actions.Q. Which of the following could be a probable reason for the Chairman to reprimand the CFO?

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.How can the Chairman’s order of suspending the Regional Manager be justified to the board?

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manger merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Managers actions.Q. How can the Chairman’s order of suspending the Regional Manager be justified to the board?

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.The client’s action, and the Chairman’s response to the same, display what important aspect of decision-making shown by the Chairman?

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manger merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Managers actions.Q. The client’s action, and the Chairman’s response to the same, display what important aspect of decision-making shown by the Chairman?

A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer?
Question Description
A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer?.
Solutions for A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A major telecom company recently hired a new Chief Financial Officer to take command of the company’s finances. This move came against the backdrop of national and global economic crises.The CFO is charged with the responsibility of realigning the finances of the largest Strategic Business Unit which deals with network solutions to major corporate clients in the country. In wake of the overall financial slump, many of the corporate clients have been delaying the payment of their recurring dues for the monthly network and internet services utilised. The local account managers handling those clients and their respective Regional Managers had been given the authority to maintain client relations and if necessary allow the delayed payments with a view to continue a long-term relationship with the key clients. However, the new CFO after taking stock of the situation decided to put an affirmative end to this practice. He sent a mail to every regional and local account manager asking them to discontinue services to the defaulting clients. In spite of such a strong communication, most major clients delayed the payments in the next month. As a response to this, the CFO resent his earlier mail asking for comments. In the next month, the single largest client defaulted on the payment and the regional manager promptly asked the technology company to terminate services to that client. The regional manager merely informed the client that the delay in payment was responsible for the termination of services and the service would be reconstituted on payment of the dues.The client faced severe difficulties due to discontinuation of the internet and local network services. The CEO of that company wrote a scathing email to the Chairman of the telecom company.The CEO pointed out the sudden, mishandled and improperly communicated decision and its severe impact on his company’s business. He pointed out that they were one of the largest clients of the telecom company. The CEO also hinted that his company would want to reconsider their future engagement. The Chairman decided to maintain the relations with that important client and yet protect his company’s image. He promptly restarted the network services and yet requested the client to clear the dues within a week and to avoid major delays especially in these times of crisis. The client replied to this communication, agreeing to the specified norms. However, the Chairman decided to severely reprimand the Regional Manager and suspended him for 2 weeks. He also severely questioned the CFO for his error. At the next board of directors meeting, there was support for the Chairman’s action in spite of protests by some senior directors who defended the CFO and the Regional Manager's actions.Which of the following could be a probable reason for the Chairman to reprimand the CFO?a)The CFO did not explain the exact nature of the financial crisis to all the other employees.b)The CFO misinterpreted the exact dimensions of the financial crisis.c)The CFO could have consulted the Chairman before taking any decisionsd)The CFO could have implemented his decisions on a case to case basis in consultation with the managers and their clients.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.
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