Logical Reasoning

PT127 · S3 · Q2 Shareholder: The company's current

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Shareholder: The company's current operations are time- proven successes.

Statements

Causal Moving into food services may siphon off funds for existing operations

Contrast Existing operations are time-proven successes.

Food services is risky, volatile, higher inherent risk.

Pharmaceuticals is less risky than food services.

Evaluate

The gist of this paragraph seems to be a rebuttal directed again a Plan.

The company is considering a Plan to move into food services, and the author is being negative about that. It might steal money we need for our existing, successful operations. Meanwhile it's volatile and riskier than other options we have for expanding (such as pharmaceuticals).

Goal

We might anticipate a safely-worded rebuttal like, "We shouldn't move into food services."

2.

If the shareholder's statements are true, which one of the following is most strongly supported by them?

  1. The company's present operations require

    Too Strong

    The company’s present operations need their current funding levels, but do not necessarily need increased funding.

    4% picked this

  2. Investment into pharmaceuticals would not

    Support Against

    Since a move into food services may siphon off funds needed by other operations, a move into other areas seem likely to pose the same risk.

    3% picked this

  3. The company will lose money

    Too Strong

    The statements suggest that a move into food services is risky, but to say that the company would lose money goes too far.

    5% picked this

  4. Only if the company expands

    Too Strong

    A move into pharmaceuticals would be less risky than a move into food services, but food services could possibly return higher profits.

    0% picked this

  5. Correct

    The company has a greater

    Why this is right

    This basically just paraphrases what we're told in the final sentence, where it says that food service industry has a higher inherent risk than pharmaceuticals. How do we know "higher risk" prefers to "unprofitability"? Our common sense about businesses care about; the sort of risks they assess.

    Skill tested: Most Supported · how this choice captures the argument's function is the move to repeat next time.

    88% picked this

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