A multinational electricity conglomerate, in its 2004 annual report, disclosed that four of its five divisions made a profit, an improvement over last year when only the European division had positive net income. The Chief Executive Officer claimed his new strategy, which involved exploiting previously untapped rural markets, is completely responsible for the improved financial performance.

Which of the following, if true, would most seriously weaken the CEO's explanation of the conglomerate's improved financial performance?

A.The electricity conglomerate opened over thirty-three new profitable offices in rural markets last year.
B.The company's urban markets did not experience substantial changes in terms of either revenues or costs.
C.The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year.
D.There will be fewer layoffs at the unprofitable divisions because a new union contract allows the company to reduce wages by ten percent to alleviate financial constraints.
E.Five years ago, the company's five divisions all met or exceeded the average net income of the one hundred largest electricity companies.
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i also go with C

Officer claimed his new strategy, which involved exploiting previously untapped rural markets, is completely responsible for the improved financial performance.

C provides alternate explanation so weakens his claim
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Premise: this year has 4 profit divisions over 1 last year.
Conclusion: New strategy accounts for that
Weaken: Seek for addition premise that accounts for the profit and withdraw the claim made by CEO

A.The electricity conglomerate opened over thirty-three new profitable offices in rural markets last year -> Strengthen the CEO's claim
B.The company's urban markets did not experience substantial changes in terms of either revenues or costs -> No change in profit ? Irrelavant to the question sterm discussed here
C.The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year. -> This year has addition revenue from last year. This additional premise tells that CEO's claim is not relevant to this year profit. This's the correct answer
D.There will be fewer layoffs at the unprofitable divisions because a new union contract allows the company to reduce wages by ten percent to alleviate financial constraints. -> Another strategy from CEO ? Not mention in passage and can't help determine the CEO's claim validation
E.Five years ago, the company's five divisions all met or exceeded the average net income of the one hundred largest electricity companies. -> This is an event in the past and doesn't help to validate the CEO's claim

The answer is C.

C gives us an alternate explanation why the company has posted improved financial performance.