A global telecommunications company reported in its 2022 annual review that three of its four sectors achieved profitability, a notable increase from the previous year when only the Asian sector was in the black. The Chief Executive Officer attributed this success to a new initiative focused on enhancing customer service in underserved regions.

Which of the following, if true, would most seriously undermine the CEO's claim regarding the reasons for the company's improved financial results?

Answer Choices

Correct answer marked below

The telecommunications company launched several new customer service centers in underserved regions last year.

The company's established markets did not see significant changes in revenue or expenses.

The finance department implemented a new accounting standard that recognizes revenue from contracts that would have previously been deferred.

Correct

There will be fewer job cuts in the struggling sectors due to a new labor agreement that permits the company to lower salaries by fifteen percent to ease financial pressures.

Three years ago, all four sectors of the company were profitable and outperformed the average earnings of the top one hundred telecommunications firms.

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Explanation

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Official Explanation

Official

To determine which statement most seriously undermines the CEO's claim, we need to analyze the implications of each option. The CEO claims that the improved financial performance is due to a new initiative in customer service. If the finance department's new accounting standard allows for the recognition of revenue that would…

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Comments

JakeMar 29, 2025

thanks!

ShivangiMay 3, 2025

Any shortcuts for solving this faster?

JosephAug 13, 2024

appreciated!

SergioMay 12, 2024

Amazing

What this question tests

What it tests

Whether you can identify the option that most undermines an argument's conclusion.

Common trap

Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.