Bell Manufacturing : GMAT Verbal Section
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 08:41

### 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

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

# Bell Manufacturing

Author Message
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 429 [0], given: 0

### Show Tags

18 Feb 2004, 11:57
This is an excellent question for you all to try, a question which I found on another website

The workers at Bell Manufacturing will shortly go on strike unless the management increases their wages. As Bell's president is well aware, however, in order to increase the workers' wages, Bell would have to sell off some of its subsidiaries. So, some of Bell's subsidiaries will be sold.

The conclusion above is properly drawn if which one of the following is assumed?

a) Bell Manufacturing will begin to suffer increased losses
b) Bell's management will refuse to increase its workers' wages
c) The workers at Bell Manufacturing will not be going on strike
d) Bell's president has the authority to offer the workers their desired wage increase
e) Bell's workers will not accept a package of improved benefits in place of their desired wage increase
_________________

Best Regards,

Paul

If you have any questions
New!
Senior Manager
Joined: 30 Aug 2003
Posts: 324
Location: dallas , tx
Followers: 1

Kudos [?]: 26 [0], given: 0

### Show Tags

18 Feb 2004, 12:06
I say C.. coz if subsidiaries are sold.. workers wont go for strike.
_________________

shubhangi

Director
Joined: 03 Jul 2003
Posts: 652
Followers: 3

Kudos [?]: 91 [0], given: 0

### Show Tags

18 Feb 2004, 13:40
shubhangi wrote:
I say C.. coz if subsidiaries are sold.. workers wont go for strike.

Good show!
Another vote for C
Senior Manager
Joined: 05 May 2003
Posts: 424
Location: Aus
Followers: 2

Kudos [?]: 10 [0], given: 0

### Show Tags

18 Feb 2004, 13:43
E ??
Senior Manager
Joined: 23 Aug 2003
Posts: 461
Location: In the middle of nowhere
Followers: 1

Kudos [?]: 23 [0], given: 0

### Show Tags

18 Feb 2004, 14:25
This is fun...coz Im saying its D...now if we could only have someony say A and B.

Im saying D coz don't we have to assume that the president of Bell Manufacturing has the authority to increase the wages which he would be doing by selling the subsidaries.

Vivek.
_________________

"Start By Doing What Is Necessary ,Then What Is Possible & Suddenly You Will Realise That You Are Doing The Impossible"

Manager
Joined: 09 Jun 2003
Posts: 187
Location: work chair
Followers: 4

Kudos [?]: 29 [0], given: 0

### Show Tags

19 Feb 2004, 01:46
Paul wrote:
The workers at Bell Manufacturing will shortly go on strike unless the management increases their wages. As Bell's president is well aware, however, in order to increase the workers' wages, Bell would have to sell off some of its subsidiaries. So, some of Bell's subsidiaries will be sold.

The conclusion above is properly drawn if which one of the following is assumed?

a) Bell Manufacturing will begin to suffer increased losses
b) Bell's management will refuse to increase its workers' wages
c) The workers at Bell Manufacturing will not be going on strike
d) Bell's president has the authority to offer the workers their desired wage increase
e) Bell's workers will not accept a package of improved benefits in place of their desired wage increase

(c) seems nice. but i'd say (a). since subsidiaries are sold and wages are increased - they'll lose profits and suffer losses...
Manager
Joined: 15 Aug 2003
Posts: 50
Location: Singapore
Followers: 1

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

### Show Tags

19 Feb 2004, 04:06
Fully agree with Vivek..

The assumption is that the President has the ability to give a wage increase. If he didnt have the authority, shareholders/stakeholders cud, perhaps, divert the money for their own use.
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 429 [0], given: 0

### Show Tags

19 Feb 2004, 04:31
OA is C
_________________

Best Regards,

Paul

Senior Manager
Joined: 12 Oct 2003
Posts: 261
Location: sydney
Followers: 1

Kudos [?]: 20 [0], given: 0

### Show Tags

19 Feb 2004, 08:56
tough fight bitween C and E. C seems circular to me. so i vote for E.
_________________

When u r about to make ends meet, someone moves the ends.

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 429 [0], given: 0

### Show Tags

19 Feb 2004, 10:09
A) This is pure speculation. Increasing wages may or may not produce losses for Bell Manufacturing. There is no mention of losses resulting from a wage increase
B) Is contrary to the conclusion and hence, cannot be assumed. If the company agreed to sell some subsidiaries, then we must conclude that it agreed to increase employees' wages
C) For the conclusion to hold, that Bell will sell some of it's subsidiaries, then we must assume that employees will not go on strike. If employees go on strike, then the conclusion falls apart and the decision of selling subsidiaries would become irrational.
D) This is beyond the scope and again is pure speculation. Even though the president does not have the authority to increase the wages, the authority to increase wages could, for instance, rest upon the vote casts by shareholders. In this case, yes, the president does not alone wield the power to increase wages but the wages could still be increased.
E) This is as misleading choice and it comes close to the answer. What we have to acknowledge is that the decision to increase wages was already taken, that is why subsidiaries are sold. Now, after selling the subsidiaries, the employees could have accepted a benefit improvement package in place of a wage increase. That we do not know and we cannot therefore assume.

So the best answer is C
_________________

Best Regards,

Paul

Senior Manager
Joined: 26 Jan 2004
Posts: 402
Location: India
Followers: 1

Kudos [?]: 1 [0], given: 0

### Show Tags

20 Feb 2004, 08:25
The workers at Bell Manufacturing will shortly go on strike unless the management increases their wages. As Bell's president is well aware, however, in order to increase the workers' wages, Bell would have to sell off some of its subsidiaries. So, some of Bell's subsidiaries will be sold.

The conclusion above is properly drawn if which one of the following is assumed?

a) Bell Manufacturing will begin to suffer increased losses
b) Bell's management will refuse to increase its workers' wages
c) The workers at Bell Manufacturing will not be going on strike
d) Bell's president has the authority to offer the workers their desired wage increase
e) Bell's workers will not accept a package of improved benefits in place of their desired wage increase

To answer the question let's first see what is the conclusion:
Conclusion: So, some of the Bell subsidaries will be sold.
Assumption1: Worker on strike if now wage increase.
Assumption2: Bell will have to sell its subsidaries to increase wages.

To make the conclusion it is important for the author to assume that Bell will start suffer losses if no wages are increase as, if wages are not increase the workers will go to strike and the only way to increase wages is to sell the subsdaries.
So I would say (A) is the best choice.
_________________

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 429 [0], given: 0

### Show Tags

20 Feb 2004, 12:32
mba wrote:

To answer the question let's first see what is the conclusion:
Conclusion: So, some of the Bell subsidaries will be sold.
Assumption1: Worker on strike if now wage increase.
Assumption2: Bell will have to sell its subsidaries to increase wages.

To make the conclusion it is important for the author to assume that Bell will start suffer losses if no wages are increase as, if wages are not increase the workers will go to strike and the only way to increase wages is to sell the subsdaries.
So I would say (A) is the best choice.

mba, your reasoning is flawed. Why are you assuming that there has to be a loss if Bell increase its employee wages? It could very much be that Bell will have to sell its subsidiaries because it does not have any liquidity ( in other words, its money is locked-in in other long-term type of investment vehicles ) to cover for the increased wage expenses. Bell could therefore sell those subsidiaries however, without having to suffer any financial losses.
_________________

Best Regards,

Paul

Intern
Joined: 31 May 2003
Posts: 18
Location: Bay Area, CA
Followers: 0

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

### Show Tags

20 Feb 2004, 15:24
The answer C seems to be an "inference" instead of an "assumption". I vote for D.
20 Feb 2004, 15:24
Similar topics Replies Last post
Similar
Topics:
Clothing manufacturer 0 17 Dec 2013, 14:33
Display posts from previous: Sort by