Sample Reading Comprehension - 59 | Reading Comprehension for UGC NET PDF Download

Statement 1 is wrong because ‘..Many present-day board now recognize the need for careful succession planning. The Chief Executive Officer’s succession plans are commonly part of his annual performance review, and most boards now devote several meetings a year to the subject..’ Statement 2 is correct ‘..even a successful company appoints an outsider who can introduce some particular expertise..’

The passage deals with the planning of an organization. None of the options other than option (d) are related to the passage. They are irrelevant and not even mentioned in the passage.

It is a direct question the answer to which can be taken from the following line ‘..even a successful company appoints an outsider who can introduce some particular expertise..’

The passage says, “When the business is running smoothly, directors are more than happy to pick an experienced insider, who will continue along the present path.” Since an inside executive already knows the system, he is preferred.

The answer can be derived from the lines: Unsurprisingly, firms in trouble are much more likely to look for fresh blood. When the business is running smoothly, directors are more than happy to pick an experienced insider, who will continue along the present path.