154.
Start-up companies financed by venture capitalist have a much lower failure rate than companies financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a start-up company than are such factors as the personal characteristics of the entrepreneur, the quality of strategic planning, or the management structure of the company.
Which of the following, if true, most seriously weakens the argument above?
(E) Venture capitalists base their decisions to fund start-up companies on such factors as the characteristics of the entrepreneur and quality of strategic planning of the company.
Given choice E, it is possible that companies with those combinations of factors that are most likely to lead to success are the very companies that venture capitalists select for financing. This weakens the argument that the financing itself must be more important for success than those factors. Thus, E is the best answer.
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