The Correct Answer and Explanation is:
The correct answer is B. If the upgrade will increase productivity, it could ultimately lower costs for the company.
Explanation
When a business like Max’s considers a software upgrade, the primary goal is to achieve a positive return on investment. Productivity is a critical metric because it directly ties employee performance to the company’s financial health.
The correct option, B, accurately captures this relationship. An email software upgrade that increases productivity allows employees to complete tasks more efficiently. For example, if the new software has better search functions, faster performance, or improved integration with other tools, employees will spend less time managing their inbox and more time on core business activities. This efficiency gain means the company gets more value from the salaries it pays, effectively lowering the cost per task. Over time, these small individual time savings accumulate across the entire organization, leading to significant cost reductions or the capacity to handle more work without increasing staff.
The other options are incorrect for several reasons. Option A is false because software upgrades, especially for businesses, are rarely free and often involve licensing fees or subscription costs. Furthermore, lost productivity always has a financial impact. Option C is poor advice; blindly implementing every available upgrade without considering its impact can introduce bugs, require costly retraining, and even decrease productivity, making it a reckless business practice. Finally, Option D is the opposite of reality. A negative impact on productivity directly and negatively affects the company’s budget by increasing labor costs for the same amount of output and potentially leading to missed deadlines and lost revenue. Therefore, considering the impact on productivity is essential for making a sound financial and operational decision.
