New stores financed by investors have a much lower failure rate than

New stores financed by investors have a much lower failure rate than stores financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a new store than are such factors as the location of the store, the quality of the staff, or the choice of merchandise.

Which of the following, if true, most seriously weakens the argument above?

A. Investors tend to be more responsive than others to changes in a new store’s financial needs.— possibly but doesn’t guarantee success of the store
B. The strategic planning of a new store is a less important factor in the long-term success of the business than are the personal characteristics of the owner. — doesn’t mention the investor
C. More than half of all new stores close within three years. —out of scope
D. The management of new stores is generally less formal than the management of ongoing stores. —doesn’t tell anything
E. Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals. — correct. If the investors decide which store to invest base on the characteristics of owner, location and marketing goals before investing meaning that those factors are the cause of the store success as well. If the characteristics of owners, location and marketing goals aren’t good, the investor won’t invest in the first place. Therefore, if this is true, the it would weaken the assumption.

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New stores financed by investors have a much lower failure rate than stores financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a new store than are such factors as the location of the store, the quality of the staff, or the choice of merchandise.

Conclusion: Source of financing is more important factor in the success of a new store than are other factors.

Weaken Argument: that source of financing is the more important factor, Pre-thinking: 1) other factors is more important 2) investors are based their investment in other factors e.g. location, quality of the staff, the conclusion will not hold true.

A. Investors tend to be more responsive than others to changes in a new store’s financial needs. - this would strengthen the argument
B. The strategic planning of a new store is a less important factor in the long-term success of the business than are the personal characteristics of the owner. - - irrelevant nothing is related to source of financing factors
C. More than half of all new stores close within three years. - irrelevant
D. The management of new stores is generally less formal than the management of ongoing stores. - irrelevant
E. Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals. - Match with our pre-thinking

Therefore E is the correct answer choice.

The right answer must be option E in my view.

Per the argument given, Cause: Financing of new stores by Investors. Effect: Results in Lower failure Rate.

The best answer is one that reverses the cause and effect relationship or the option which states the cause stated in the argument as the effect rather than the cause.
Option E basically states that New Investors' decision to fund a store is based on factors such as characteristics of the owner, location of the store, and marketing goals. Implying the Cause is rather based on factors such as owner characteristics, location of the store, and marketing goals. The effects per option E is instead Investors' decision to fund the new store.

conclusion:
Source of financing, therefore, must be a more important causative factor in the success of a new store than are such factors as the location of the store, the quality of the staff, or the choice of merchandise.
option which weakens the conclusion:

Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals
IMO E

New stores financed by investors have a much lower failure rate than stores financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a new store than are such factors as the location of the store, the quality of the staff, or the choice of merchandise.

Which of the following, if true, most seriously weakens the argument above?

A. Investors tend to be more responsive than others to changes in a new store’s financial needs.
B. The strategic planning of a new store is a less important factor in the long-term success of the business than are the personal characteristics of the owner.
C. More than half of all new stores close within three years.
D. The management of new stores is generally less formal than the management of ongoing stores.
E. Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals.

Summary: the conclusion is draw based on the fact that Stores with investment from Investor have lower chance of failure (Investor -> Successful). Now, let's examine the answer choices:

A. Investors tend to be more responsive than others to changes in a new store’s financial needs.-> This emphasize the importance of investors in the success of store, hence strengthen the conclusion -> OUT
B. The strategic planning of a new store is a less important factor in the long-term success of the business than are the personal characteristics of the owner.This one is out of scope because it mentions irrelevant factors to the argument->OUT
C. More than half of all new stores close within three years.Thanks, Nice to know ->OUT
D. The management of new stores is generally less formal than the management of ongoing stores.So? -> OUT
E. Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals.This option explain the reason behind the success of Stores with Investor: not the investor but other factors contribute to the success of the stores

ARGUMENT
[prem] Stores financed by investors have a lower failure rate than stores financed through other means;
[con] Therefore, source of financing must be a more important factor than other things such as location quality etc;
[asum] That investors do not base their decisions to finance on these other things.

Answer (E)

A. Wrong. This option, in a small way, strengthens the conclusion.
B. Wrong. Comparison between store owner and strategic planning is not in the scope of the argument.
C. Wrong. The information in this option has no impact on the argument.
D. Wrong. Information given is irrelevant.
E. Correct. This option suggests that investors fund new stores on the basis of location of the store, and marketing goals, etc., thus weakening our belief in the conclusion.

Imo. E

Premise: New stores financed by investors have a much lower failure rate than stores financed by other means.

Conclusion: Source of financing, therefore, must be a more important causative factor in the success of a new store than are such factors as the location of the store, the quality of the staff, or the choice of merchandise.

Cause and effect: Source of financing leads success of new store rather than location of the store, the quality of the staff, or the choice of merchandise.

Potential weakener: 1) what if other mentioned factors leads to success of new store or
2) Another (new) factor leads to success of new store.

Which of the following, if true, most seriously weakens the argument above?

A. Investors tend to be more responsive than others to changes in a new store’s financial needs. - Out of scope as it's far away from conclusion.
B. The strategic planning of a new store is a less important factor in the long-term success of the business than are the personal characteristics of the owner. - Nothing about long term success of business mentioned in the paragraph.
C. More than half of all new stores close within three years. - Out of scope as it's far away from conclusion.
D. The management of new stores is generally less formal than the management of ongoing stores. - So, what? How it affects the conclusion? Wrong.
E. Investors base their decisions to fund new stores on such factors as the personal characteristics of the owner, location of the store, and marketing goals. - Yes, a few of other (mentioned) factors, i.e. personal characteristics of the owner and location of the store considered by investors prior to investing into new store. Hence, it weakens the conclusion.

Official Explanation

Correct Answer: E

The best answer is E. The argument is that source of financing must be a more important causative factor in the success of a new store than other factors. Choice
E suggests that it is not the source of financing that makes the difference, rather that investors are more likely to finance new stores in which the other factors - good locations, good quality of staff etc. - are good.