CEO: Many potential investors who have only received second-hand

Question

CEO: Many potential investors who have only received second-hand accounts of our internal workings believe that we have an inadequate Human Resources Department. This belief is unfounded, as evidenced by the fact that over the past four years, this company has devoted more resources to improving hiring processes and employee discipline protocols than any of our peers have.

Which of the following, if true, most seriously undermines the reasoning in the CEO’s argument?

A. In the CEO’s company, expenditure on the Human Resources Department has been rising more slowly over the past four years than it has in several other similar companies.
B. In general, the adequacy of a company’s Human Resources Department is not as important to an investor considering investing in the company as is the company’s overall market share.
C. Only companies with severely inadequate Human Resources departments need to spend large amounts of resources on improving hiring processes and employee discipline protocols.
D. Generally, the efficiency of a company’s Human Resources Department depends on the number of employees and local labor laws.
E. Over the past four years, several prominent investors have invested in the company.

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Adit_ · Answer

Option C  clearly states the reason that ONLY companies that are indeed inadequate will even spend large amount. So them investing more than their peers makes their case really weak.

vasu1104 · Answer

investors believe that we have an inadequate HR department (HR people everywhere get mocked)
over the past four years, the company has devoted more resources to improving hiring processes and employee discipline protocols than any of our peers have.

conclusion= this belief is unfounded.

A that means they are taking necessary steps to improve the department. and increase doesnt necessarily mean bad all the time. so reject.
B who cares about what investors should focus on when investing. out.
C if thats the case then CEO is dumbfounded to put forth such comments. this clearly hit the hidden truth and attacks the conclusion.
D yeah we all know that but it has no impact on conclusion.
E who cares about that? they just want their money. no impact. out.

agrasan · Answer

Hi  KarishmaB  @MaryMurray  DmitryFarber

C. Only companies with severely inadequate Human Resources departments need to spend large amounts of resources on improving hiring processes and employee discipline protocols.

I don't understand how (C) is the best answer here, even if other four are not correct.

My reasoning is we are just given in the argument that  this company has devoted  more  resources than any of its peers have, how can we say that it has spent  large amounts  and (C) talks specifically about  large amounts  to weaken it according to the official answer. In the given argument, it can be very possible that the company spends only $10k which can/cannot be a large amount.

Please help me understand where I am going wrong here.

KarishmaB · Answer

As given, (C) is the best option and we can assume "more resources than peers" to be a "large amount." Also, option (C) talks about "severely inadequate" needing "large amounts." Essentially one could say that more amount spent likely indicates inadequacy. We need to let some things slide on many non-official questions.

laborumplaceat · Answer

C: Shows that high spending may indicate a bad HR, not a good one → directly weakens the CEO’s logic.
(C is the correct answer)

A: Compares growth rate, not total spending or adequacy → irrelevant.
B: Talks about investor priorities, not HR quality → irrelevant.
D: Gives other factors affecting efficiency, doesn’t weaken CEO’s claim → weak.
E: Investors still investing doesn’t prove HR is adequate → irrelevant.

ExpertsGlobal5 · Answer

Video explanation:

https://www.youtube.com/watch?v=35j0heHKkhY

CEO: Many potential investors who have only received second-hand

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