In my school, business, compsci and psychology had a GPA requirement.
All of the fratboys who washed out of the Business department either landed in sociology, MIS, or economics. They seemed to do well there, and get decent jobs as long as they had 15 credits of accounting.
I was told that they didn't really wash people out until the graduate level.
You're considering the supply side, but not the demand side. If the business major required a certain GPA to stay in, the competition among students could kick someone out, especially if grades were calculated on a bell curve. Someone who can't hack it would consistently score lower than their peers in that scenario and not meet the GPA cutoff.
All of the fratboys who washed out of the Business department either landed in sociology, MIS, or economics. They seemed to do well there, and get decent jobs as long as they had 15 credits of accounting.
I was told that they didn't really wash people out until the graduate level.