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Bunuel
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3 person committee means the combination can be:

1 from each of company1, company2, company3
OR
1 from each of company1, company2, company4
OR
1 from each of company2, company3, company4
OR
1 from each of company1, company3, company4

So the combination for any one of these is 2 * 2 *2 = 8
So total combinations are 8*4 = 32

Posted from my mobile device
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Each of the 4 companies in a conference is represented by its CEO & CFO. In how many ways can a 3-person committee be selected with a maximum of one representative for a company?

So we have 4 companies and each has its own CEO and CFO.
What we need to do is create a 3 man committee with MAX 1 representative for a company.

Meaning lets say :
C : Company
E : CEO
F : CFO

So lets say,
C1 : has E1 and F1.
C2 : has E2 and F2
C3 : has E3 and F3
C4 : has E4 and F4.

We need groups like E1,E2,E3 or E1,E2,F3 or E2,F4,F3.
So in-order to do this
first select a 3 different companies from the 4 available : 4C3 ways = 4
Now from the 3 selected companies, we have 2 options(CFO or CEO) each from which we need to pick one so 2C1 = 2
do this for all the 3 selections we get 2C1 * 2C1 * 2C1.

Finally we get 4C3 * 2C1 * 2C1 * 2C1 = 4 * 2 * 2 *2 = 32
Hence IMO B.
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viditkhemani
Can someone please provide a proper explanation for this

Hope my explanation above, satisfies your query.
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Solved this in another way:
The first person in the committee can be filled in 8 ways (since there are 8 people to choose from). The second person in 6 ways (since we cannot get from the same company), and the last in 4 ways. 8 x 6 x 4 = 192
Since the order of people selected does not matter, I divided this by 3! or 6. 192 / 6 = 32
Ans B
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