Conclusion: The obvious compromise is for these executives to use their titles externally but not within their corporations.
Premise: Fearing that the use of titles indicating position in the corporation tends to make the corporate hierarchy rigid by inhibiting communication, some corporations shun the use of executive titles. A title, however, can facilitate an executive's dealings with external businesses since it encourages outsiders to treat the executive with respect.
Assumption: The knowlegde that executives use the title outside will not reach internally and even if it reaches will not enforce rigidity.
Why correct?(C) Even if it is widely known within a corporation that the corporation's executives use executive titles outside their organizations, this knowledge does not by itself inhibit communication within the corporation. --> In line with assumption. If this was not the case then the conclusion would fall apart.
Why wrong?(A) Only small corporations can preserve an atmosphere of mutual respect and high regard without having a rigid corporate hierarchy.--> out of scope as the argument is about executives in general and not in a specifci type of company.
(B) Referring to an executive by using a title can encourage both those outside the organization and inside the organization to treat the executive with respect. --> yes but this might weaken the argument that using title will enforce rigidity and inhibit communction. Moreover, doesnt talk about external.
(D) A rigid corporate hierarchy can promote efficiency within an organization as well as provide access to the corporation for those outside the organization. --> no rigid hierachy is not wanted hence weaken a part of argument that title should not be used internally.
(E) Although many corporate executives disapprove of rigid hierarchies on the grounds that they inhibit communication, the vast majority of executives have no qualms about using titles both internally and externally. -->