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Downtown Villieu was once a flourishing business district

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Downtown Villieu was once a flourishing business district [#permalink] New post 07 Jul 2013, 00:49
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Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.


Which of the following, if true, most threatens the plan's likelihood of success?

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.
[Reveal] Spoiler: OA

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Last edited by Zarrolou on 07 Jul 2013, 00:53, edited 2 times in total.
Renamed the topic, edited OA.
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Re: Downtown Villieu was once a flourishing business district [#permalink] New post 07 Jul 2013, 00:58
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Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.


Which of the following, if true, most threatens the plan's likelihood of success?

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there.
The plan could still attract NEW businesses.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs.
This is something that does not threatens the plan, because it does not provide any info necessary to evaluate it.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
CORRECT: the plan wants to attract new business with low taxes, but if those are still higher than the ones of Villieu's suburbs, the plan's success is threatened.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs.
This is not relevant to the plan.
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region.
Again, it does not give us any info to evaluate the plan.
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Re: Downtown Villieu was once a flourishing business district [#permalink] New post 07 Jul 2013, 01:32
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?
(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there. - We are concerned about the business located in suburbs & not in Downtown. Incorrect.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs. - Vacancy rate is higher NOW but we dont have any idea about the vacancy rate for new buildings. Incorrect.
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings.
- CORRECT. Officials plans to attract new business by offering lower tax rates but the tax rates in suburbs are already lower than the proposed tax rates. Because businesses have no incentive, so they wont come to downtown. CORRECT
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs. - OFS. Incorrect
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region. - Will the bew buildings fulfill the requirement of businesses we dont know. Thus incorrect.
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Re: Downtown Villieu was once a flourishing business district [#permalink] New post 05 Sep 2014, 09:07
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Re: Downtown Villieu was once a flourishing business district [#permalink] New post 05 Sep 2014, 16:21
Downtown Villieu was once a flourishing business district, but most Villieu-area businesses are now located only in the suburbs. The office buildings downtown lack the modern amenities most business operators demand today. To lure more businesses downtown, Villieu officials plan to have several modern office buildings constructed and to offer reduced local tax rates to any business that leases space in a new downtown building.

Which of the following, if true, most threatens the plan's likelihood of success?
Possible weakeners: V officials are not doing anything to modernise amenities in downtown - the primary reason why offices relocated to the suburbs. Maybe the reduced taxes in the downtown are not enough to compensate the businesses for relocating to downtown and possibly pay for these modern amenities themselves.

(A) Most of the businesses currently located in downtown Villieu have long-term leases on the space they occupy there. This could be a weakener. "Long term leases" could mean that the officials may not be able to clear out space for new buildings, which they propose to make to lure offices from suburbs. Lets keep this aside for the moment.
(B) The existing office buildings in downtown Villieu have, on average, a much higher vacancy rate than do office buildings in Villieu's suburbs. Irrelevant
(C) The local tax rates in Villieu's suburbs are significantly lower than downtown Villieu's proposed rate for businesses that lease space in the new office buildings. Yes! Somewhat along the lines of what we were thinking of before starting the POE. One of the 2 proposals was reduction in local taxes in downtown. But if these taxes are still higher than taxes in the suburbs then coupled with the lack of modern amenities (since the argument never proposed providing modern amenities), businesses would choose not to relocate to downtown and stay in the suburbs.
(D) Most of the businesses that currently lease office space in downtown Villieu also lease office space in Villieu's suburbs. The plan is to lure "more businesses". This option tells us that "some" existing businesses located in suburbs and new businesses may choose to locate downtown. Strengthens the case and hence goes in the wrong direction
(E) With the new office buildings, downtown Villieu would have a greater amount of modern office space than any other downtown business district in the region Irrelevant
Re: Downtown Villieu was once a flourishing business district   [#permalink] 05 Sep 2014, 16:21
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