Since publicly traded companies opt to shield some negative informatio

Question

Since publicly traded companies opt to shield some negative information about their company from the market, negative information tends to be shared progressively less and in wider communication channels of a company's organization. The public is, therefore, has less negative information about a publicly traded company than do the company's employees of the most private circles, such as the CEO.

The conclusion drawn above is based on the assumption that

A) positive information flows freely through the communication channels of a publicly traded company

B) employees of a publicly traded company never leak private information about that company to the market

C) CEOs and other members of the most private circles of a publicly traded company are willing to distort the perceived truth about the company in order to defend the company's share price

D) the public obtains negative information about a public company only from sources within that company

E) the public wants all relevant information about a publicly traded company, positive and negative

dreamknight · Accepted Answer

Since publicly traded companies opt to shield some negative information about their company from the market, negative information tends to be shared progressively less and in wider communication channels of a company's organization. The public is, therefore, has less negative information about a publicly traded company than do the company's employees of the most private circles, such as the CEO.

The conclusion drawn above is based on the assumption that

A)  positive information flows freely through the communication channels of a publicly traded company - wrong 
The comparison is between the amount of negative information with the public and the amount of negative information with the company's employees of the most private circles. The comparison is not between the amount of positive and the amount of negative information with the public. Even if the positive information flows freely, the public may still still end up with less negative info as compared to company's employees of most private circles.

B)  employees of a publicly traded company never leak private information about that company to the market - wrong 
private information doesn't necessarily mean negative information. Even if private information is leaked, it can be positive information. The negation of this option doesn't make conclusion invalid.

C)  CEOs and other members of the most private circles of a publicly traded company are willing to distort the perceived truth about the company in order to defend the company's share price - wrong 
Even if the are willing, they may still not actually distort. (Willingness and actual actions may differ)

D)  the public obtains negative information about a public company only from sources within that company - correct 
If this options is negated, then the argument's conclusion falls. public may get negative information from other sources and hence the amount of negative information with public may not necessarily be less as compared with the company's employees of the most private circles.

E)  the public wants all relevant information about a publicly traded company, positive and negative - wrong 
The conclusion is not based on the assumption of public's wants. Public may still end up getting information even if they don't want all information.

yashbabu · Answer

IMO -A
Because rest all can be eliminated from POE

Posted from my mobile device

dhs0079 · Answer

IMO - B, unless it is assumed that employees of public companies don’t leak the information, the conclusion which is drawn from the premise that negative information can be controlled seems void.

Posted from my mobile device

AbhiJ001 · Answer

OA can be A, as conclusion and premise is based on that negative information retains within company, but positive one flows free

nedunurianurag · Answer

Correct answer is D.

A) positive information flows freely through the communication channels of a publicly traded company - This is not an assumption on which the conclusion is based on. How does it have an impact on the conclusion that public has less negative information?

B) employees of a publicly traded company never leak private information about that company to the market - This is a cleverly designed answer with the intent of swaying the test taker to select this. Private information does not necessarily mean negative information.

C) CEOs and other members of the most private circles of a publicly traded company are willing to distort the perceived truth about the company in order to defend the company's share price - Incorrect answer. This does not help hold the conclusion. Remember that an assumption should always help the conclusion to be drawn without any question.

D) the public obtains negative information about a public company only from sources within that company - Correct. Only if the author considers that public cannot obtain negative information about the company from other sources, can the author provide the said conclusion. The argument fails if the author does not consider this premise as true.

E) the public wants all relevant information about a publicly traded company, positive and negative - This is irrelevant for the conclusion. Remember that an assumption is a necessary component of an argument

VerbalBot · Answer

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