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I think the answer to the question is D and not E, E talks about the living situation near the company, What does this have to do with the employees claiming the reason to not leave is an Open door policy and accountability. Mind you this is a question where you have to undermine the conclusion.
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I think the answer to the question is D and not E, E talks about the living situation near the company, What does this have to do with the employees claiming the reason to not leave is an Open door policy and accountability. Mind you this is a question where you have to undermine the conclusion.

IMO the reason, why E is correct and D is not, is that we are searching for a point which proves that why employees are staying with Fine Thread company and not moving to other retailers. we are not discussing here that they are changing their job to some other type of business or profession so dissatisfaction is not the criteria here which makes D wrong. E says that employees are not moving to competitors ( the discussion is limited to clothing retailers only) because they are saving money on rent if they continue working with the FINE THREAD company. This undermines/weakens the argument that employees are staying with the company only because of good policies.
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It took me 50 seconds to crack it. IMO the correct answer is E because we have to undermine conclusion that employees in Fine Threads are not leaving because of the casual corporate structure and as per option E the employees are not leaving the organization because the cost of living near the store is less as compared to other store and that's why they are staying in the organization. For example - which company you will prefer to work in - the one which is calling you back to office or the one which have work from home policy.
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(E) The cost of living near most Fine Threads retail stores is much lower than it is in areas in which competitors have their stores.

Option (E) introduces the factor of the cost of living near Fine Threads retail stores compared to the cost of living near competitors' stores. This information suggests an alternative explanation for why Fine Threads may retain employees, unrelated to its corporate structure.

If the cost of living is lower near Fine Threads stores, employees might choose to stay with Fine Threads not solely because of the corporate structure but because they find it more economically advantageous to work there. This undermines the argument's conclusion that the corporate structure is the primary reason for employee retention, as economic factors could be playing a significant role
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