This is a common correlation/causation issue. We know that having parties in the corporation and high profits are correlated with each other. The argument’s conclusion makes the common mistake to conclude that the parties caused the higher profits. Hmmm. That doesn’t even make sense! Of course it’s the higher profits that caused the celebratory parties! Thank goodness, answer choice (A) puts things straight. If the increased profits came before the social events then the claim that the social events caused the increased profits would be absurd.
(A) is correct for the reasons above.
(B) Compares corporations that have social events either during or after business hours. But does not compare their profits relative to corporations that have no social events.
(C) Is irrelevant. Having above average profits doesn’t mean that EZ Corporation could not increase their profits by having social events. Even assuming social events cause higher profits.
(D) Is the most tempting of the incorrect answer choices. This answer choice assumes that less time to perform their assigned duties would result in the inability to increase profits. Not necessarily true!
(E) Is irrelevant. The argument’s conclusion never claims that social events will make a corporation the most profitable of its size. Saying that the EZ Corporation wasn’t the most profitable is not the same thing as the EZ Corporation did not benefit with higher profits when it had social events.