QUESTION
Which of the following, if true, supports the conclusion that disbanding the centralized planning unit helped Disney perform strongly?
A) The centralized planning unit used a decision procedure that required business units to answer the same fundamental questions each year.
B) In the entertainment industry, companies can be profitable if just a few of their projects earn extraordinarily high returns.
C) The centralized planning unit was created in response to concerns that the company was losing focus on its core business.
D) An economic downturn that took place after Disney disbanded the centralized planning unit reduced Disney customers’ discretionary income.
E) Disney’s rivals often change their management structures as part of efforts to make their organizations more efficient and customer-focused.
ANSWER
Answer: D
Explanation: D) Disney performed well after the centralized planning unit was disbanded, but so what? Maybe Disney performed well for other reasons. Maybe the economy did better, and, as result, everyone should expect to do better. Choice D rules out this possibility and thereby strengthens the argument. Choice A talks about a decision procedure. Asking the same fundamental questions might be a good thing or a bad thing. There’s no way to tell, so Choice A does not weaken the argument here. Choices B and E are about the industry in general and don’t tell us anything about the centralized planning unit at Disney. Choice C weakens the argument by pointing out the relevance of the centralized planning unit.
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