Final answer:
The statement is true because majority rule can lead to a situation known as Condorcet's paradox, wherein no single outcome emerges as the top choice when more than two options exist, resulting in a preference cycle without a clear majority.
Step-by-step explanation:
The statement is true. Majority rule, which is often used as a decision-making process, can indeed fail to produce a single preferred outcome when there are more than two choices. This failure is known as Condorcet's paradox, which occurs when a collective prefers alternative A over alternative B, alternative B over alternative C, and alternative C over alternative A, creating a cycle without a clear winner. This paradox shows that collective preferences can be non-transitive, essentially meaning that majority wishes can conflict with each other when multiple options are available.