Statement: Since its launching in 1881, Kitchens Ltd has so far accumulated losses amounting to Sterling 100 000.
Courses of Action:
1. Kitchens Ltd should be directed to reduce wasteful expenditure and to increase sale prices.
2. An amount of about Sterling 200 000 should be provided to Kitchens Ltd to make the company economically viable
Answer: A
Clearly, for better economic gain, losses should be reduced and income increased. So, only course I follows.