A multinational electricity conglomerate, in its 2004 annual : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 09 Dec 2016, 20:47

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A multinational electricity conglomerate, in its 2004 annual

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

• 0% [0]
• 0% [0]
• 100% [10]
• 0% [0]
Author Message
TAGS:

### Hide Tags

Director
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 563
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 16

Kudos [?]: 270 [1] , given: 75

A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

08 Aug 2012, 05:37
1
This post received
KUDOS
00:00

Difficulty:

5% (low)

Question Stats:

90% (02:12) correct 10% (00:59) wrong based on 100 sessions

### HideShow timer Statistics

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

_________________

" Make more efforts "
Press Kudos if you liked my post

Last edited by thevenus on 13 Aug 2012, 05:02, edited 1 time in total.
If you have any questions
you can ask an expert
New!
Senior Manager
Joined: 15 Jun 2010
Posts: 368
Schools: IE'14, ISB'14, Kellogg'15
WE 1: 7 Yrs in Automobile (Commercial Vehicle industry)
Followers: 11

Kudos [?]: 366 [0], given: 50

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

08 Aug 2012, 06:24
IMO C.
B: strengthens the argument
And all other seems Out of scope
Wait for OA!!!
_________________

Regards
SD
-----------------------------
Press Kudos if you like my post.
Debrief 610-540-580-710(Long Journey): http://gmatclub.com/forum/from-600-540-580-710-finally-achieved-in-4th-attempt-142456.html

Manager
Joined: 31 Aug 2011
Posts: 217
Followers: 6

Kudos [?]: 195 [0], given: 54

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

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
_________________

If you found my contribution helpful, please click the +1 Kudos button on the left, I kinda need some =)

Senior Manager
Joined: 19 Apr 2011
Posts: 289
Schools: Booth,NUS,St.Gallon
Followers: 5

Kudos [?]: 271 [0], given: 51

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

10 Aug 2012, 08:30
The answer is C .It gives an alternate explanation for the increase in revenue and hence weakens the argument .
_________________

+1 if you like my explanation .Thanks

Manager
Joined: 31 Oct 2011
Posts: 50
Concentration: General Management, Entrepreneurship
GMAT 1: 710 Q50 V35
GPA: 3.4
WE: Accounting (Commercial Banking)
Followers: 0

Kudos [?]: 18 [0], given: 7

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

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
Director
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 563
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 16

Kudos [?]: 270 [0], given: 75

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

13 Aug 2012, 05:03
Thank you all for the response.Undoubtedly, the winner is (C).
Cheers !!!
_________________

" Make more efforts "
Press Kudos if you liked my post

Manager
Joined: 10 Jan 2010
Posts: 81
Schools: IIM
Followers: 0

Kudos [?]: 22 [0], given: 11

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

14 Aug 2012, 04:05
The answer is C.

C gives us an alternate explanation why the company has posted improved financial performance.
BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 16 Aug 2011
Posts: 912
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 72

Kudos [?]: 590 [0], given: 44

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

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
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Manager
Status: Training
Joined: 03 Jun 2013
Posts: 90
Location: Canada
GPA: 3.7
Followers: 3

Kudos [?]: 127 [0], given: 3

Re: A multinational electricity conglomerate, in its 2004 annual [#permalink]

### Show Tags

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.
_________________

KUDOS please if my post was useful!

Re: A multinational electricity conglomerate, in its 2004 annual   [#permalink] 26 Jun 2013, 09:35
Similar topics Replies Last post
Similar
Topics:
Modernize their electrical substations 0 12 Oct 2015, 10:52
The element ytterbium increases its electrical resistance when subject 2 31 Aug 2015, 04:49
18 OG 2016 - Demand for electricity 12 22 Aug 2015, 18:48
At the beginning of 2004, Congress enacted a 15% 4 03 Dec 2013, 15:03
gmatprep CR electric cars 11 17 Dec 2006, 13:27
Display posts from previous: Sort by

# A multinational electricity conglomerate, in its 2004 annual

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.