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Senior Manager
Joined: 19 Feb 2004
Posts: 477
Location: Lungi
Followers: 1
Kudos [?]:
1
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Bonuses at DSR Industries cannot be awarded unless profits [#permalink]
 07 Apr 2004, 06:58
Question Stats:
50% (02:18) correct
50% (00:00) wrong based on 0 sessions
Bonuses at DSR Industries cannot be awarded
unless profits exceed a ten percent return on stock-
holders' investments in the company. Higher profits
mean higher bonuses. Therefore, bonuses in a year
of general economic recession will be considerably
lower than bonuses in a year of peak profits at
DSR.
The conclusion above depends on the assumption that
(A) the firm will have relatively low profits in reces-
sion years
(B) the amount represented by a ten percent return
on stockholders' investments in the company
will increase from year to year
(C) profits rarely exceed a ten percent return on
stockholders' investments in the company
(D) profits in excess of a ten percent return on
stockholders' investments in the company are
all distributed in the form of bonuses
(E) bonuses at DSR never drop to zero
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Manager
Joined: 16 Oct 2003
Posts: 225
Location: India
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I will go for A.
_________________
A 750 aspirant.
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Senior Manager
Joined: 05 Feb 2004
Posts: 417
Location: USA
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A for me too!!
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GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4441
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obviously, A 
_________________
Best Regards,
Paul
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SVP
Joined: 30 Oct 2003
Posts: 1963
Location: NewJersey USA
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A I guess.
The profits are relatively low and are above 10%
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Intern
Joined: 07 Apr 2004
Posts: 21
Location: montreal
Followers: 0
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I like A
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