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That pretty much sums it up. The idea behind total and quota is to put all the sororities on an equal playing field. If you went through formal rush and one or two of the chapters were noticibly smaller than the others, you probably would not want to join them. If a group misses quota for even a year, it can be really hard to recover. That is why the smaller chapters are given the opportunity to catch up through snap bidding and COB. If a chapter has consistant membership problems, it is likely they may have to fold. This is not just a hit to the chapter and national organization, but the entire panhellenic community.
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