Exam IIA-CIA-Part3 topic 1 question 86 discussion

When governments put pressure on companies to maintain or increase employment, it can create inflexibility. For instance, companies might be forced to keep more employees than they need, making it harder to allocate resources to expand capacity efficiently.

The correct answer is A. Government pressure on organizations to increase or maintain employment. This option describes a limiting factor for capacity expansion as government policies or pressures can restrict organizations from expanding their capacity if it affects employment levels

I dont think D is correct. Option B seems to be more reasonable.

i dont understand well why D, but after elimination process, D is only option left. :)

I reasoned through this one as follows - A - wouldn't be a problem if expansion is the goal expansion will require more employees not less B - Seems like kind of a nonsense answer, if management can be described as being or having "production" orientation that seems like a good thing for expansion C - Also nonsense, if there's no leader in the industry, doesn't that just leave room for someone to become one, which bodes well for expansion I picked D because if a company is trying to make many different kinds of products, it has to make more of some and less of others which means resources are limited for each product, limiting expansion, or possibly it's referring to the fact you can only sell so many of a given product because there's only so much need for any single product so to expand you have to figure out how to diversify. Not sure either of those is what they meant but I got the right answer.

explain