GMAT Critical Reasoning (CR) | Re: Because no employee wants to be associated with bad news in

Because no employee wants to be associated with bad news in the eyes of a superior, information about serious problems at lower levels is progressively softened and distorted as it goes up each step in the management hierarchy. the chief executive is therefore, less well informed about problems at lower levels than are his or her subordinates at those levels.

The conclusion drawn above is based on the assumption that
a) problems should be solved at levels in the management hierarchy at which