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In every major company the CEO is responsible for crucial
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30 Nov 2006, 22:17
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In every major company the CEO is responsible for crucial business decisions as well as for the performance of company’s employees. It is clear, then, that if a company files for bankruptcy, the CEO should be held responsible for the failure of the company to perform adequately.
Which of the following provides the best evidence of weakening the argument above?
A. A certain auto company lost market share when its CEO became ill but refused to relinquish his position until he eventually needed hospital care.
B. In many fast-growing industries, such as computer electronics and biotechnology, CEOs must stay abreast of new technological developments that CEOs in other industries can ignore.
C. Since they have their professional reputations to consider, almost all CEOs do the best job they can in running their companies.
D. Some companies operate more successfully under interim management after a CEO has retired earlier than anticipated.
E. Some companies have failed after being victimized by criminal activity, such as product-tampering, that are beyond the control of the CEO.
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Re: In every major company the CEO is responsible for crucial
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30 Nov 2006, 22:31
mst wrote:
In every major company the CEO is responsible for crucial business decisions as well as for the performance of company’s employees. It is clear, then, that if a company files for bankruptcy, the CEO should be held responsible for the failure of the company to perform adequately.
Which of the following provides the best evidence of weakening the argument above? A. A certain auto company lost market share when its CEO became ill but refused to relinquish his position until he eventually needed hospital care. B. In many fast-growing industries, such as computer electronics and biotechnology, CEOs must stay abreast of new technological developments that CEOs in other industries can ignore. C. Since they have their professional reputations to consider, almost all CEOs do the best job they can in running their companies. D. Some companies operate more successfully under interim management after a CEO has retired earlier than anticipated. E. Some companies have failed after being victimized by criminal activity, such as product-tampering, that are beyond the control of the CEO.
My answer. Companies can fail because of various reasons, that are not under the control of CEO. Who can blame CEO of an Airlines company for bad performance when 9/11 happened?
Re: In every major company the CEO is responsible for crucial
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01 Dec 2006, 10:30
Thanks, the OA is E.
When I was attempting the question, I had a doubt whether to go for D or E.
The way I interpreted D was that some companies can perform well without the CEO , so CEO alone is not responsible for the success of the company. But I should be only focussing on the point that CEO alone is not responsible for the failure of the company.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
gmatclubot
Re: In every major company the CEO is responsible for crucial [#permalink]