Which statement best describes the board's preferred business model for ABC?

• A. To keep ABC as a traditional concrete producer.
• B. To become a digital services provider.
• C. To pivot to consumer electronics.
• D. To focus solely on recycling services.

Answer: (A)

This question tests how a board’s preferred business model aligns with the company’s existing strengths and risk tolerance. Keeping ABC as a traditional concrete producer reflects a stability-minded approach that leverages established plants, distribution networks, supplier and customer relationships, and proven demand in construction. It avoids the disruption, new capabilities, and large capital needs that come with unfamiliar ventures, signaling comfort with steady, incremental growth rather than a dramatic shift.

The other options imply significant pivots—moving into digital services, consumer electronics, or limiting the business to recycling—each requiring new capabilities, different markets, and substantial investment. They risk diluting focus from the core operations and exposing the company to greater, unfamiliar risks.