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Re: An inadequately diversified product line rather than the poor economy [#permalink]
A) The size of the company is irrelevant here. There is no reason why that piece of information should influence the argument.
B) This is a good choice. The author makes a causal statement: "An inequality diversified product line is the cause of the sales decline, not the poor economy". If Company A had undergone a public scandal, then it is possible that the product line diversification is no longer the cause of the sales decline, but the public scandal.
C) Even if other competitors had experienced sales decline, there is no telling if they had "adequately" diversified product lines. Moreover, the focus on the argument is not on the other competitors, but on the sales decline of company A.
D) This is not required by the argument. Once again, the focus of this argument is not about what the competitors of A (excl. B because the author cites B as an example).
E) This is a piece of information that is most likely true - if there is a poor economy as the author suggests, then there are most likely other firms who have also seen a sales decline. However, the author has never made the assumption that company A was the only company facing a sales decline.

From elimination, the choice must be B.
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Re: An inadequately diversified product line rather than the poor economy [#permalink]
(B) Company A did not suffer a very damaging public scandal 3 years ago.

Bunuel, doesn't this introduce new "outside" information. I'm wondering how is this assumption a must? Assumptions are supposed to be something that the author MUST believe in but does not state it explicitly.

Granted, all other options are too strong because of the word "only" in most of them, but this seemed to be like introducing outside information
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Re: An inadequately diversified product line rather than the poor economy [#permalink]
I second that as then this would be the case of elimination of other options.

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Re: An inadequately diversified product line rather than the poor economy [#permalink]
TheBipedalHorse wrote:
(B) Company A did not suffer a very damaging public scandal 3 years ago.

Bunuel, doesn't this introduce new "outside" information. I'm wondering how is this assumption a must? Assumptions are supposed to be something that the author MUST believe in but does not state it explicitly.

Granted, all other options are too strong because of the word "only" in most of them, but this seemed to be like introducing outside information


Firstly, the usage of "strong" vocab to eliminate choices does not work for the GMAT - it is a trick, and will only work for lower level questions. Word choice is certainly important, however it is not grounds to discard an answer choice purely for strong words.

Secondly:
No, it is not bringing in extra information. This is something that the author has assumed.
More specifically, the author makes this statement:
"An inadequately diversified product line rather than the poor economy is responsible for the drop in sales"

By making this statement, the author has made the claim that the "inadequately diversified product line" is the cause of the drop of sales. Logically, this implies that the author must also assume that there have been no other possible causes for the sales drop, including a public scandal.
(This is precisely why it is so hard, in a legal context, to establish causal relations - because there are so many other variables at play).
If you are still not convinced, try the negation technique:
"There was a public scandal involving company A".
If this is the case, then this undermines the authors argument no? How can we say it is "diversification of product line" when we have the big public scandal?
Therefore, B is quite integral to the authors argument.
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Re: An inadequately diversified product line rather than the poor economy [#permalink]
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