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Bell Manufacturing

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Bell Manufacturing [#permalink] New post 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

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 [#permalink] New post 18 Feb 2004, 12:06
I say C.. coz if subsidiaries are sold.. workers wont go for strike.

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 [#permalink] New post 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
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 [#permalink] New post 18 Feb 2004, 13:43
E ??
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 [#permalink] New post 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.

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Re: Bell Manufacturing [#permalink] New post 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...
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 [#permalink] New post 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.
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 [#permalink] New post 19 Feb 2004, 04:31
OA is C

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 [#permalink] New post 19 Feb 2004, 08:56
tough fight bitween C and E. C seems circular to me. so i vote for E.

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 [#permalink] New post 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

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 [#permalink] New post 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.

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 [#permalink] New post 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.

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 [#permalink] New post 20 Feb 2004, 15:24
The answer C seems to be an "inference" instead of an "assumption". I vote for D.
  [#permalink] 20 Feb 2004, 15:24
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