When a major record label signs a contract with a band, the label assumes considerable financial risk. It pays for videos, album art, management, and promotions. Hence, the band does not need to assume nearly as much risk as it would if it produced its own records independently. For this reason, it the profits from the record sales of any band signed with it.
What this question is testing
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.
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