Logical ReasoningDifficulty: Easy

PT127 S3 Q2 Explanation

Shareholder: The company's current

A free, expert breakdown of this official LSAT Logical Reasoning question.

TopicsMost Supported

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Stimulus

Shareholder: The company's current operations are time- proven successes. The move into food services may siphon off funds needed by these other operations. Also, the food service industry is volatile, with a higher inherent risk than into which the company has considered expanding.

What this question is testing

Most Supported

Your task

Break the argument into its conclusion and evidence, then do exactly what the question stem asks with that structure.

Common trap

Answers that sound relevant to the topic but don't connect to the argument's actual reasoning.

Winning move

Predict what a right answer must do, then test each choice against the conclusion-evidence gap.

Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.

The question
2.

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

Answer choices

  1. Too Strong4% picked this

    The company's present operations require increased

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

  2. Support Against3% picked this

    Investment into pharmaceuticals would not siphon off money from

    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. Too Strong5% picked this

    The company will lose money as it expands into the food

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

  4. Too Strong0% picked this

    Only if the company expands its operations into pharmaceuticals are increased

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

  5. Correct88% picked this

    The company has a greater chance of losing money in food services

    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.

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