Free Practice Question
CR · Critical Reasoning
605-655
Resolve a Paradox
Consultant: Since the appointment of its new CEO last year, profits at Brakeland Insurance Company have declined. While accident claims involving privately owned cars have increased, along with the associated increase in cost in time for Brakeland employees who have to interact with all the different customers with claims, these increases are not primarily responsible for driving down profits. Instead, the decline in profits is primarily due to the inefficient corporate structure at Brakeland, with costly duplication of roles in customer service. After all, Sterling Auto Insurance Company has seen a similar increase in accidents among its insured vehicles, but while Brakeland's profits have decreased, Sterling's have increased in the same time period. Moreover, Sterling has a somewhat smaller customer service team than Brakeland has.
Which of the following most weakens the consultant’s argument?
Which of the following most weakens the consultant’s argument?
Answer Choices
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In the insurance field, an individual customer service representative, on average, tends to get paid substantially less than an individual actuary who determines insurance rates.
B
Sterling’s customer-service approval ratings have always been higher than Brakeland’s, and the difference has increased over the past year.
C
In many industries, downsizing the workforce to eliminate clear duplication of roles is a guaranteed way to increase profits.
D
Individual policies traditionally account for the majority of Brakeland's profits, while large corporate policies have accounted for the majority of Sterling's.
E
Brakeland's new CEO has instituted a policy of hands-on management with the intention of ensuring that senior members of staff are aware of all company problems.
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Difficulty
605-655
Type
CR