To avoid a hostile takeover attempt, the board of directors of Wellco, Inc., a provider of life and health insurance, planned to take out large loans and use them to purchase a publishing company, a chocolate factory, and a nationwide chain of movie theaters. The directors anticipated that these purchase initially would plunge the corporation deep into debt, rendering it unattractive to those who wanted to take it over, but that steadily rising insurance rates would allow the company to pay off the debt within five years. Meanwhile, revenues from the three new businesses would enable the corporation as a whole to continue to meet its increased operating expenses. Ultimately, according o the directors’ plan, the diversification would strengthen the corporation by varying the sources and schedules of its annual revenues.

Which of the following, assuming that all are equally possible, would most enhance the chances of the plan’s success?
(A) A widespread drought decreases the availability of cacao beans, from which chocolate is manufacture, diving up chocolate prices worldwide.
(B) New government regulations require a 30 percent across-the-board rate rollback of all insurance companies, to begin immediately and to be completed within a five-year period.
(C) Congress enacts a statute, effective after six months, making it illegal for any parent not to carry health insurance coverage for his or her child.
(D) Large-screen televisions drop dramatically in price due to surprise alterations in trade barriers with Japan; movie theater attendance dwindles as a consequence.
(E) A new, inexpensive process is discovered for making paper pulp, and paper prices fall to 60 percent of their former level

Good question. I have to agree with C, even if chose A initially. I focussed on these 3 new businesses, and just based on that A came closest on my radar.
What is the source?

Here the 3 business faring well is sub-ordinate to insurance company doing well in insurance domain. The use of word "meanwhile" clearly indicates this. E can be eliminated because whenever raw material needed for manufacturing goes down that specific segment of business is ought to tranfer the benefits to consumers (similar to airfares going down when oil prices go down). Hence E weakens as it may hit the business plan. So only C is left. I hope this was clear..
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OA is C

NO there is no OE. but i think suresh has explained quite well

I dont undestand why is C.

The plan was about taking large loans and use them to purchase a publishing company, a chocolate factory, and a nationwide chain of movie theaters.

The question says which scenario would most enhance the chances of the plan’s success? so it has to be something concerning those 3 business, not concerning the insurance business itself...

PS: i was with E
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IMO C.. as suggested by other. 'A' is out of scope as the cost of chocolates may go up. And we are not aware if this would be profitable or would lead to loss( less ppl buy choc). So A is out.

To avoid a hostile takeover attempt, the board of directors of Wellco, Inc., a provider of life and health insurance, planned to take out large loans and use them to purchase a publishing company, a chocolate factory, and a nationwide chain of movie theaters. The directors anticipated that these purchase initially would plunge the corporation deep into debt, rendering it unattractive to those who wanted to take it over, but that steadily rising insurance rates would allow the company to pay off the debt within five years. Meanwhile, revenues from the three new businesses would enable the corporation as a whole to continue to meet its increased operating expenses. Ultimately, according o the directors’ plan, the diversification would strengthen the corporation by varying the sources and schedules of its annual revenues.
Which of the following, assuming that all are equally possible, would most enhance the chances of the plan’s success?
(A) A widespread drought decreases the availability of cacao beans, from which chocolate is manufacture, diving up chocolate prices worldwide.
(B) New government regulations require a 30 percent across-the-board rate rollback of all insurance companies, to begin immediately and to be completed within a five-year period.
(C) Congress enacts a statute, effective after six months, making it illegal for any parent not to carry health insurance coverage for his or her child.
(D) Large-screen televisions drop dramatically in price due to surprise alterations in trade barriers with Japan; movie theater attendance dwindles as a consequence.
(E) A new, inexpensive process is discovered for making paper pulp, and paper prices fall to 60 percent of their former level


Guys , I have posted this question for a purpose . In powerscore CR bible , I have read that even if the question stem suggests that there can be more than one right answer , there is only one right answer and therefore you should not worry about modifiers like "most" or "least" etc . I don't see that to be working here . I find both option A and C to be fine here . I need some expert advice here

oh...i tht that more cost of raw materials implies more cost for end product and hence more revenue . I guess that rise in the prices of raw materials does not tells us anything.

The OA is a bit confusing and questionable, hence, not reliable because in the question stem there is no information about children and a number of them who do not have insurance. We cannot be sure that through compulsory enhancing the number of insured people the revenues will be increased insofar as we do not posses necessary data about children to be given an insurance. E.g. current number of people who have got an insurance from the Wellco company is, say, 10,000 and a number of prospective children to be insured are 1 million, then the option C stands to be correct. But if a number of prospective children to be insured are only 100 then ans C can be easily rejected. In result of such an uncertainty the OA remains debatable.