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Because of the recent transformation of the market. Quore, [#permalink]

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10 Sep 2009, 19:21

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E

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40% (02:42) correct
60% (01:40) wrong based on 106 sessions

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Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore’s production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable. If the statements above are true, which one of the following must on the basis of them also be true?

(A) It is only Quore’s production structure that makes it possible for Quore to survive the transformation of the market. (B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. (C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy. (D) Because of the transformation of the market, Quore will achieve a productivity increase of 10 percent over the next two years. (E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.

Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore’s production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable. If the statements above are true, which one of the following must on the basis of them also be true?

(A) It is only Quore’s production structure that makes it possible for Quore to survive the transformation of the market. (B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. (C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy. (D) Because of the transformation of the market, Quore will achieve a productivity increase of 10 percent over the next two years. (E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.

Please explain ur answers.

the best way to do this one is to diagram everything you're given in the problem

they tell you that if it doesn't increase by 10%, it will go bankrupt. this is diagrammed as:

(1) if (not)10% -> then bankrupt.

next it says if 10% is possible, then 20% is possible. this is diagrammed as:

10% possible -> then 20% possible

next, you should always look at the converse of statements, as that will usually be the key to unlocking the problem. the converse of this statement is:

(2) if 20% not possible -> 10% not possible

now you have everything you need. if you add equation 1 to the end of equation 2, you will see that E is true:

if 20% not possible ->10 % not possible -> then bankrupt

Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore’s production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable. If the statements above are true, which one of the following must on the basis of them also be true?

(A) It is only Quore’s production structure that makes it possible for Quore to survive the transformation of the market. (B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. (C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy. (D) Because of the transformation of the market, Quore will achieve a productivity increase of 10 percent over the next two years. (E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.

Please explain ur answers.

the best way to do this one is to diagram everything you're given in the problem

they tell you that if it doesn't increase by 10%, it will go bankrupt. this is diagrammed as:

(1) if (not)10% -> then bankrupt.

next it says if 10% is possible, then 20% is possible. this is diagrammed as:

10% possible -> then 20% possible

next, you should always look at the converse of statements, as that will usually be the key to unlocking the problem. the converse of this statement is:

(2) if 20% not possible -> 10% not possible

now you have everything you need. if you add equation 1 to the end of equation 2, you will see that E is true:

if 20% not possible ->10 % not possible -> then bankrupt

therefore, E is the answer

I was confused beteen B and C altough none seemed 100% correct. Nice explanation.
_________________

Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore’s production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable. If the statements above are true, which one of the following must on the basis of them also be true?

(A) It is only Quore’s production structure that makes it possible for Quore to survive the transformation of the market. (B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. (C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy. (D) Because of the transformation of the market, Quore will achieve a productivity increase of 10 percent over the next two years. (E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.

Premise: Recent transformation forced Quore Inc. to increase productivity by 10% over two years or it will certainly go bankrupt. Premise: 10% productivity increase means 20% productivity increase can be achieved too.

I chose B. (B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. Quore needs only 10% to avoid bankruptcy. So if it achieves 20% then it will certainly not go bankrupt.

But OA is E. How come? Help.
_________________

My dad once said to me: Son, nothing succeeds like success.

(B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. If it increases productivity by 10 percent over the next two years, Quore inc will not go bankrupted. Thus 20% productivity increase should hurt not going bankruptcy

(E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt. If 20 percent productivity increase is unattainable for Quore, then it must go bankrupt. This looked like an extreme statement where it says even if Quore Inc achieved 10% productivity increase but not 20%, it should go bankrupt. _________________

I think statement B is wrong because nowhere it is mentioned in the stimulus that if the company achieves 20 % productivity increase then it will not go bankrupt. In the stimulus it just says that it will not go bankrupt if 20 % is unattainable. here is a difference between "Achieving" and "Attaining" So the correct answer is "E"

The reason why B is wrong is simply due to the word "certainly". The stimulus says that the company will certainly go bankrupt if it fails to increase its productivity by 10%. If it achieves, let's say, 20% productivity increase, this only means that the company will not "certainly" go bankrupt, but it could still be likely. The kicker in this one is that "not certainly" is the opposite of "certainly", not "not".

Re: Because of the recent transformation of the market. Quore, [#permalink]

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17 Dec 2014, 05:08

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Re: Because of the recent transformation of the market. Quore, [#permalink]

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07 Feb 2016, 11:04

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Because of the recent transformation of the market. Quore,
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07 Feb 2016, 11:04

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