Tarnopol Learning Services (TLS) Offers Tutoring to High School Students

Tarnopol Learning Services (TLS) offers tutoring to high school students, college students, and adults returning to school. TLS also bids on government-sponsored contracts. TLS's major product offerings include academic tutoring, standardized test preparation, and admissions consulting. Its operations spread over many geographic regions. Currently, the company is deciding whether it should change from its current approach of organizing by geographical area. A senior manager has predicted that if TLS is not profitable this year and fails to develop any new products, the company will switch to either a functional approach or a product approach.
If the senior manager's prediction is accurate, which of the following is inferable?
If TLS does not change to either a product approach or a functional approach, then it will not change its organizational approach at all.
If TLS is not profitable this year and fails to develop any new products, the company will first switch to a functional approach and then to a product approach.
If TLS is profitable, then it could organize itself by customer groups.
If TLS does not change to either a product approach or a functional approach, then it could not have been profitable this year.
If TLS does not change to either a product approach or a functional approach, then it could not have developed any new products.