Inside Information

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Since publicly traded companies opt to shield some negative information about their company from the market, negative information tends to be shared progressively less and in wider communication channels of a company's organization. The public is, therefore, has less negative information about a publicly traded company than do the company's employees of the most private circles, such as the CEO.

The conclusion drawn above is based on the assumption that

Review: Inside Information


Explanation

In our initial approach, a prediction of the answer may not spring to mind. Here we can make use of the fact that, on questions asking for an assumption, the answer choices can always be evaluated with the negation test or analysis by cases. If we apply the test correctly, we won't need a filter.

Logical proof: If (A) is negated, the conclusion is truer, if anything. So (A) is out. We'll negate (B); even if employees leak information sometimes, if it's shared progressively less as it propagates outward, the argument is still true, because the leak was either on the outside and there was less info to leak, or it leaked near the center but got muffled on the way to the outside. So (B) is out. We negate (C); if CEOs were unwilling to distort information, that wouldn't hurt the argument, because the information could still be "shielded"; (C) is not very relevant. (C) is out. We like (D), we skip forward and swiftly call (E) irrelevant. Back to (D), our favorite. We'll negate it: if the public obtains information from outside the company--maybe lots of information or superior information, even--then the public doesn't necessary have less negative information. (D) is evidently a critical assumption. The correct answer is (D).


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