Critical Reasoning

A survey of entrepreneurs who started companies last year shows that while virtually all did substantial preparatory research and planning, only half used that work to produce a formal business plan. Since, on average, the entrepreneurs without formal plans secured the capital they needed in half the time of those with plans, these survey results indicate that, in general, formal plans did not help the entrepreneurs who produced them to secure the capital they needed.

Which of the following, if true, most seriously weakens the argument?

A. Companies started by entrepreneurs who had used formal business plans to attract investment were on the whole as profitable in their first year as were companies started by entrepreneurs who had not produced such plans.
B. In surveys of entrepreneurs who have attempted without success to raise sufficient capital, more than half of the respondents indicate that they have produced a formal business plan.
C. Among the entrepreneurs surveyed, those who did not produce formal business plans sought and received a much larger proportion of their capital from investors with whom they had a long-standing business relationship.
D. The entrepreneurs surveyed who did not produce a formal business plan spent nearly as much time doing preparatory research and planning as the entrepreneurs who produced plans.
E. The entrepreneurs who produced business plans generally reported later that the process of writing the plan had increased their confidence that their company would succeed.

My analysis:

Since the conclusion is "plan did not help", only option D weakens the conclusion stating that plans have been made.

What is your thought?

Please explain.

The entrepreneurs without formal plans secured the capital soon than those with plans.Thus formal plans did not help the entrepreneurs who produced them to secure the capital.

To weak the argument we must prove that the plan is indeed helpful or there are other factors that help secure the capital in less time.

Option C is correct.

As the entrepreneurs without formal plans got much of the capital from investors,there are other factors involved in this.So this weaken the argument.

why option D is not correct?Note that research&planning work and formal business plan work are different as stated in the argument.They spent much time only on research&planning but not on formal business plan.So this does not weaken the argument

Conclusion: The formal plan did not help to secure capital.

Which will weaken the conclusion?

If we can prove that to some extent they were involved in planning, then the conclusion will be weakened.

Am I missing something?

Thanks.

A survey of entrepreneurs who started companies last year shows that while virtually all did substantial preparatory research and planning, only half used that work to produce a formal business plan

As per the argument those entrepreneurs who secured a capital soon doesn't spent any time on business plan and spent time only on research&Planning.

Moreover Option D mentions that those people spent as much time only in Research&planning but not in business plan.Nowhere it mentioned they spent time in creating business plan.

Hope this clarify..

Anand,

u nailed it!

C - plan was not useful only in cases where the entrepreneurs had long standing relationships/ network BUT not in general!