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

 It is currently 20 Jan 2017, 05:05

### 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

Author Message
Intern
Joined: 20 Dec 2012
Posts: 1
Followers: 0

Kudos [?]: 0 [0], given: 11

### Show Tags

11 Jan 2013, 12:55
"Furniture Depot employed our internet advertising company to help. Since then its sales increased by 10% over last year's totals. Furniture Depot's success demonstrates how using our internet services can increase your profitability."

In the argument, the author uses cause and effect to concludes that any business can increase its profitability by using Internet advertising as used by Furniture Depot. He bases his conclusion on single evidence. And assumes certain aspects in his conclusion. His assumptions are flawed. A few include.

Primarily, the author ignores all others factors that could have effected profitability of Furniture Depot. There might be many other factors in addition to Internet advertisement that would have led to increase in profitability of the firm. For instance reduction in computation might be the major reason for increase in the profit.

Secondly, the author uses data in percentage form to prove his point. Percentage data would may give misleading picture without any information about the initial fingers. For instance an increase profit from $1000 to$ 1100 is a 10% increase but a \$ 100 increase might not be very substantial for large business firms.

Lastly, the author in his conclusion misses the fact that every business has its own requirements and strongly concludes that the same strategy can be successful for all type of business firms. For example the advertisement strategy for a FMCG product will be completely different from that of Furniture Depot.

The author’s argument could have been justified if the author has provided some more statistical data to show the increase in profitability. Furthermore the author could have taken other factors that can affect profitability into consideration. Moreover a reduced force on the conclusion might have made the argument more acceptable.

Therefore based on the reasons cited above the argument is ill constructed and flawed.
Similar topics Replies Last post
Similar
Topics:
Can someone help me solve this problem 1 15 Jul 2014, 02:15
hi, can someone please rate it for me? 0 05 Jun 2012, 23:14
Please someone help me understand my strategy 5 12 Feb 2010, 12:48
1 Can someone help me to creat a study plan? 6 29 Oct 2009, 15:20
Display posts from previous: Sort by

Moderators: WaterFlowsUp, HiLine

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.