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A multinational electricity conglomerate, in its 2004 annual

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A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 08 Aug 2012, 05:37
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A multinational electricity conglomerate, in its 2004 annual report, disclosed that four of its five divisions made a profit, an improvement over last year when only the European division had positive net income. The Chief Executive Officer claimed his new strategy, which involved exploiting previously untapped rural markets, is completely responsible for the improved financial performance.

Which of the following, if true, would most seriously weaken the CEO's explanation of the conglomerate's improved financial performance?

A.The electricity conglomerate opened over thirty-three new profitable offices in rural markets last year.
B.The company's urban markets did not experience substantial changes in terms of either revenues or costs.
C.The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year.
D.There will be fewer layoffs at the unprofitable divisions because a new union contract allows the company to reduce wages by ten percent to alleviate financial constraints.
E.Five years ago, the company's five divisions all met or exceeded the average net income of the one hundred largest electricity companies.
[Reveal] Spoiler: OA

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Last edited by thevenus on 13 Aug 2012, 05:02, edited 1 time in total.
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 08 Aug 2012, 06:24
IMO C.
B: strengthens the argument
And all other seems Out of scope
Wait for OA!!!
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 10 Aug 2012, 06:46
i also go with C

Officer claimed his new strategy, which involved exploiting previously untapped rural markets, is completely responsible for the improved financial performance.

C provides alternate explanation so weakens his claim
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 10 Aug 2012, 08:30
The answer is C .It gives an alternate explanation for the increase in revenue and hence weakens the argument .
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 13 Aug 2012, 04:53
Premise: this year has 4 profit divisions over 1 last year.
Conclusion: New strategy accounts for that
Weaken: Seek for addition premise that accounts for the profit and withdraw the claim made by CEO

A.The electricity conglomerate opened over thirty-three new profitable offices in rural markets last year -> Strengthen the CEO's claim
B.The company's urban markets did not experience substantial changes in terms of either revenues or costs -> No change in profit ? Irrelavant to the question sterm discussed here
C.The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year. -> This year has addition revenue from last year. This additional premise tells that CEO's claim is not relevant to this year profit. This's the correct answer
D.There will be fewer layoffs at the unprofitable divisions because a new union contract allows the company to reduce wages by ten percent to alleviate financial constraints. -> Another strategy from CEO ? Not mention in passage and can't help determine the CEO's claim validation
E.Five years ago, the company's five divisions all met or exceeded the average net income of the one hundred largest electricity companies. -> This is an event in the past and doesn't help to validate the CEO's claim
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 13 Aug 2012, 05:03
Thank you all for the response.Undoubtedly, the winner is (C).
Cheers !!!
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 14 Aug 2012, 04:05
The answer is C.

C gives us an alternate explanation why the company has posted improved financial performance.
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 14 Aug 2012, 07:12
A multinational electricity conglomerate, in its 2004 annual report, disclosed that four of its five divisions made a profit, an improvement over last year when only the European division had positive net income. The Chief Executive Officer claimed his new strategy, which involved exploiting previously untapped rural markets, is completely responsible for the improved financial performance.

Which of the following, if true, would most seriously weaken the CEO's explanation of the conglomerate's improved financial performance?

A.The electricity conglomerate opened over thirty-three new profitable offices in rural markets last year.
=> This choice does not affect anything to the conclusion of the argument
B.The company's urban markets did not experience substantial changes in terms of either revenues or costs.
=> The conclusion of the argument is about the rural market, not about urban market. So, this choice is irrelevant to the conclusion of the argument
C.The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year.
=> This is great other explanation for the conclusion of the argument, alternating the rural market's responsibilities to the improved financial performance. By the way, because of the new system of accounting, revenue transactions would have not been recorded until the following year.
D.There will be fewer layoffs at the unprofitable divisions because a new union contract allows the company to reduce wages by ten percent to alleviate financial constraints.
=> Irrelevant to the conclusion
E.Five years ago, the company's five divisions all met or exceeded the average net income of the one hundred largest electricity companies.
=> Out of scope
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Re: A multinational electricity conglomerate, in its 2004 annual [#permalink] New post 26 Jun 2013, 09:35
Guys, I agree, with C, but isn't the sentence grammatically incorrect?

The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year.

I believe it should be:

The accounting department applied a new accounting regulation that includes as revenue transactions that which previously would have not have been recorded until the following year.

OR

The accounting department applied a new accounting regulation that includes as revenue transactions that previously would have not have been recorded until the following year.


Kaplan: PLEASE please work harder to ensure that your sentences are grammatically correct. It's really difficult to try to learn from questions when you can't be sure of their legitimacy.
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Re: A multinational electricity conglomerate, in its 2004 annual   [#permalink] 26 Jun 2013, 09:35
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