Question

Read the following passage and answer the question by choosing among the four alternatives given:
In the ever-evolving world of business, competition is fierce, and companies are constantly seeking strategies to gain a competitive edge. One such strategy is innovation. Innovation is the lifeblood of business growth, as it allows companies to develop groundbreaking products, services, and processes that meet the changing needs and desires of customers. Innovative companies understand that standing still is not an option; they actively foster a culture of creativity and exploration. They encourage employees to think outside the box, take calculated risks, and embrace new ideas. These companies invest in research and development, allocate resources for experimentation, and collaborate with external partners to harness the power of collective intelligence. By embracing innovation, companies can stay ahead of the curve, seize new opportunities, and create a sustainable advantage in the dynamic marketplace.
Why is innovation important for businesses?

• A. To create a sense of competition among employees.
• B. To maintain a static and unchanging product lineup.
• C. To meet the evolving needs of customers.
• D. To avoid collaborating with external partners.

Hint:

When answering comprehension questions, focus on the main reasons or benefits highlighted in the passage.
Eliminate options that contradict the passage or are irrelevant.

Answer 1

The Correct Option is C

The passage explains that innovation is crucial because it allows companies to develop new products and services that adapt to the changing needs and desires of customers. Without innovation, companies would struggle to keep up with market demands.
Step 1: Identify key points
- Innovation drives business growth.
- It enables companies to create groundbreaking products and services.
- It helps meet changing customer needs.
Step 2: Analyze options
- Option (A) is incorrect as competition among employees is not the main focus.
- Option (B) is opposite to the passage's message; innovation opposes static product lines.
- Option (D) is incorrect; the passage promotes collaboration with external partners.
- Option (C) correctly captures the main importance of innovation.
Therefore, the correct answer is (C) To meet the evolving needs of customers.