Cicada Inc. is a small firm involved in the design and manufacture of residential and commercial furniture. The company has recently identified an attractive opportunity that would serve their growth and revenue plans well, but Jack Walters, one of the company's founding members, vehemently opposes the idea.
-Which of the following, if true, would most strengthen Jack's argument?

Question

Quizplus · Accepted Answer

This option highlights the potential downside of the opportunity, which strengthens Jack's argument against it. As a founding member, Jack may have more knowledge of the company's operations and the potential risks involved than others. The fact that the downside loss could threaten existing operations is a significant concern that could hinder the growth plans. Therefore, E is the best choice.  Option A does not strengthen Jack's argument as it suggests that the return on investment is still greater than the borrowing cost, which implies the opportunity may still be profitable. Option B weakens Jack's argument as it suggests that the company has control over the situation. Option C does not have any clear relation to the argument against the opportunity. Option D only suggests that Jack has avoided risks, but it does not necessarily mean that his actions were not justified.