Stockholders have been critical of the Flyna Company, a major furniture retailer, because most of Flyna's furniture is manufactured in Country X from local wood, and illegal logging is widespread there. However, Flyna has set up a certification scheme for lumber mills. It has hired a staff of auditors and forestry professionals who review documentation of the wood supply of Country X's lumber mills to ensure its legal origin, make surprise visits to mills to verify documents, and certify mills as approved sources of legally obtained lumber. Flyna uses only lumber from certified mills. Thus, Flyna's claim that its Country X wood supply is obtained legally is justified.
Which of the following, if true, would most undermine the justification provided for Flyna's claim?
A) Only about one-third of Flyna's inspectors were hired from outside the company.
B) Country X's government recently reduced its subsidies for lumber production.
C) Flyna has had to pay higher than expected salaries to attract qualified inspectors.
D) The proportion of Country X's lumber mills inspected each year by Flyna's staff is about 10 percent, randomly selected.
E) Illegal logging costs Country X's government a significant amount in lost revenue each year.
Source: Official Guide Verbal Review 2021
CR12701.02![]()
Which of the following, if true, would most undermine the justification provided for Flyna's claim?
A) Only about one-third of Flyna's inspectors were hired from outside the company.
B) Country X's government recently reduced its subsidies for lumber production.
C) Flyna has had to pay higher than expected salaries to attract qualified inspectors.
D) The proportion of Country X's lumber mills inspected each year by Flyna's staff is about 10 percent, randomly selected.
E) Illegal logging costs Country X's government a significant amount in lost revenue each year.
Source: Official Guide Verbal Review 2021
CR12701.02