GMAT Critical Reasoning

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Source: OG

Level: 3

Fearing that the use of titles indicating position in the corporation tends to make the corporate hierarchy rigid by inhibiting communication, some corporations shun the use of executive titles. A title, however, can facilitate an executive's dealings with external businesses since it encourages outsiders to treat the executive with respect. The obvious compromise is for these executives to use their titles externally but not within their corporations.

Which of the following, if true, provides the most support for the compromise suggested above?

  • A Only small corporations can preserve an atmosphere of mutual respect and high regard without having a rigid corporate hierarchy.
  • B Referring to an executive by using a title can encourage both those outside the organization and inside the organization to treat the executive with respect.
  • C Even if it is widely known within a corporation that the corporation's executives use executive titles outside their organizations, this knowledge does not by itself inhibit communication within the corporation.
  • D A rigid corporate hierarchy can promote efficiency within an organization as well as provide access to the corporation for those outside the organization.
  • E Although many corporate executives disapprove of rigid hierarchies on the grounds that they inhibit communication, the vast majority of executives have no qualms about using titles both internally and externally.

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