Logical Reasoning

PT23 · S3 · Q2 Owners of deeply indebted and chronically unprofitable

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Owners of deeply indebted and chronically unprofitable small businesses sometimes try to convince others to invest money in their companies.

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.

2.

Which one of the following, if true, most helps to explain the surprising results of such investments?

  1. Investors usually choose to reinvest

    Trap

    1% picked this

  2. Expanding production in such companies

    Trap

    1% picked this

  3. Correct

    Paying off debts, by saving

    Why this is right

    Answer C is correct.

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

    96% picked this

  4. Banks are reluctant to lend

    Trap

    0% picked this

  5. If the sales of a

    Trap

    1% picked this

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