Answer: b. Lack of courage
Explanation:
I am unsure of the source of this question but the above should be the correct answer.
Option A is incorrect because one can clearly see that an issue between two managers is no small issue if it is affecting the company.
Option C is also incorrect because an administration is in charge of the entire company and is capable of making these important decisions. The mere fact that the question asks why the previous administration did nothing points to the authority it had.
Option D is most likely incorrect because had there been a lot of issues, the question would have mentioned it.
This leaves option B which makes sense because regardless of the authority the administration had or the level by which the issue affected the company, if the admin had no courage, they would have done nothing.