Kingsland companies often outsource data-entry tasks to : GMAT Critical Reasoning (CR)
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# Kingsland companies often outsource data-entry tasks to

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10 Oct 2012, 20:36
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Kingsland companies often outsource data-entry tasks to foreign firms. The results of this outsourcing have been shown to lower costs for Kingsland companies in several different ways, and high costs can potentially bankrupt Kingsland companies. The decision to outsource is rare, except during recessions, when the Kingsland economy is weak. Therefore, Kingsland companies probably outsource their work because doing so helps them avoid bankruptcy.

Which of the following would it be most useful to determine in order to evaluate the argument?
(A) Whether outsourcing is the most effective cost-lowering method available to Kingsland firms.
(B) Whether the firms to which Kingsland companies outsource data-entry tasks are at risk of bankruptcy during recessions
(C) Whether companies in cities other than Kingsland outsource data-entry tasks to foreign firms
(D) Whether the only time foreign firms are available for data-entry tasks is when the Kingsland economy is weak
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms

[Reveal] Spoiler: If you liked it
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[Reveal] Spoiler: OE
The argument suggests that Kingsland companies outsource to foreign firms as a cost-saving measure, and that the cost savings are only worthwhile to them during recessions. One assumption the argument makes is that the same options are available to them at all times--the same mix of foreign and domestic options for outsourcing, or perhaps the same availability and cost of hiring employees. While this isn't explicitly an "assumption" question, many "evalulate" questions hinge on assumptions.

The assumption that the same options are available at all times is captured by (D), which is correct. It might seem obvious that, in most real-world situations, foreign firms are available at all times, but once the question raises it as a point that might be in question, you must consider the possibility that it is an assumption left unstated by the argument.
[Reveal] Spoiler: OA

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12 Oct 2012, 19:56
thanks for your post. I narrowed bew A and D, can you explain why A wrong?
thanks so much.
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16 Oct 2012, 04:06
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I think the essence of this question is to determine whether the purpose of outsource is to avoid bankrupt in the recession or not. It has shown that outsource can reduce cost, but cost reduction does not directly lead to avoid bankrupt
(A) Whether outsourcing is the most effective cost-lowering method available to Kingsland firms.
This can determine whether the purpose of outsource is to achieve lowest cost, but cannot determine whether the outsource is to avoid bankruptcy
(B) Whether the firms to which Kingsland companies outsource data-entry tasks are at risk of bankruptcy during recessions
Not related
(C) Whether companies in cities other than Kingsland outsource data-entry tasks to foreign firms
Not related
(D) Whether the only time foreign firms are available for data-entry tasks is when the Kingsland economy is weak
Correct, since if yes, then it is possible that the company made the decision to outsource in the recession only because this is the only time the option is available,
not because they want to avoid bankruptcy during recession.
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms
Not related
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08 Nov 2012, 02:14
I am not convinced that A is wrong and D is correct.
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13 Dec 2012, 04:13
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Paradox here is Outsourcing in recession is not a good idea but Kingsland firm did it because it is helping it to save itself from bankruptcy...........
I think B could be the best answer. May be this time recession has affected company doing outsourcing business also and they have reduced their charges hence is helping kingsland
but cant think of answer why is D correct
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13 Dec 2012, 09:38
Archit143 wrote:
Paradox here is Outsourcing in recession is not a good idea but Kingsland firm did it because it is helping it to save itself from bankruptcy...........
I think B could be the best answer. May be this time recession has affected company doing outsourcing business also and they have reduced their charges hence is helping kingsland
but cant think of answer why is D correct

maybe outsourced company is at risk but they can be putting too much of effort in recession time.
and can provide best service available.
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14 Dec 2012, 07:23
I found it quite ok...got it right answer....
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15 Dec 2012, 19:36
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Archit143 wrote:
Paradox here is Outsourcing in recession is not a good idea but Kingsland firm did it because it is helping it to save itself from bankruptcy...........
I think B could be the best answer. May be this time recession has affected company doing outsourcing business also and they have reduced their charges hence is helping kingsland
but cant think of answer why is D correct

The argument is that Kingsland companies PROBABLY outsources because doing so will help them avoid bankruptcy.

We're looking for an answer that would change the LIKELIHOOD of companies outsourcing during a recession to avoid bankruptcy, given the facts and statements made.

A) Whether outsourcing is the most effective cost-lowering method available to Kingsland firms.

This is too generalized. If outsourcing is the MOST effective way of lowering cost, then it companies will PROBABLY outsource. If it is NOT the most effective way, companies can still have the likelihood of outsourcing AND implement the most effective way (say for example, salary cut). We don't know whether the companies will implement either, both, or none. The answer to A) may affect the likelihood of outsourcing but is not guaranteed.

B) Whether the firms to which Kingsland companies outsource data-entry tasks are at risk of bankruptcy during recessions

The answer to B) might also affect the likelihood of outsourcing, but is also not guaranteed.

C) is irrelevant

D) Whether the only time foreign firms are available for data-entry tasks is when the Kingsland economy is weak

If outsourcing is not available when the economy is weak, then companies CANNOT outsource even if they wanted to. Info from answer D provides a more concrete resolution than answer B and A and guarantees that companies WILL NOT and CANNOT outsource if foreign firms are not available to take on the job.

E) is irrelevant
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16 Dec 2012, 04:33
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thevenus wrote:
Kingsland companies often outsource data-entry tasks to foreign firms. The results of this outsourcing have been shown to lower costs for Kingsland companies in several different ways, and high costs can potentially bankrupt Kingsland companies. The decision to outsource is rare, except during recessions, when the Kingsland economy is weak. Therefore, Kingsland companies probably outsource their work because doing so helps them avoid bankruptcy.

Which of the following would it be most useful to determine in order to evaluate the argument?
(A) Whether outsourcing is the most effective cost-lowering method available to Kingsland firms.
(B) Whether the firms to which Kingsland companies outsource data-entry tasks are at risk of bankruptcy during recessions
(C) Whether companies in cities other than Kingsland outsource data-entry tasks to foreign firms
(D) Whether the only time foreign firms are available for data-entry tasks is when the Kingsland economy is weak
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms

[Reveal] Spoiler: If you liked it
another good quality question,Press Kudos if you liked it

[Reveal] Spoiler: OE
The argument suggests that Kingsland companies outsource to foreign firms as a cost-saving measure, and that the cost savings are only worthwhile to them during recessions. One assumption the argument makes is that the same options are available to them at all times--the same mix of foreign and domestic options for outsourcing, or perhaps the same availability and cost of hiring employees. While this isn't explicitly an "assumption" question, many "evalulate" questions hinge on assumptions.

The assumption that the same options are available at all times is captured by (D), which is correct. It might seem obvious that, in most real-world situations, foreign firms are available at all times, but once the question raises it as a point that might be in question, you must consider the possibility that it is an assumption left unstated by the argument.

B cannot be the answer. We don't care whether the foreign firms are in recession or out of recession. Even if they are, let them be. Who cares.
Whereas in D, if you answer the question in affirmative then the conclusion sounds fine but if your answer is NO then the conclusion doesn't sounds fine.
Straight shot D.
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09 Jan 2013, 02:58
I would support the first option, as is the case in most of the outsourcing works.

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12 Jan 2013, 19:20
I knew it was D but then I second guessed myself and picked A. I need to stop doing that.
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13 Jan 2013, 01:07
I fell for the trap in answer choice B. My reasoning was that the company may go out of business due to high cost if no foreign firm where available for outsourcing services, a circumstance that could result if the foreign firm went out of business during a recession.

My justification for D

"D" is the correct choice because the firm requiring outsourcing services needs those services most when cost are high. So will those services be available regardless of what is happening in the economy? If yes, then outsourcing makes sense, if not, it doesn't-the firm would not have the benefit of outsourcing when it needs outsourcing the most.
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13 Jan 2013, 01:13
Marcab wrote:
thevenus wrote:
Kingsland companies often outsource data-entry tasks to foreign firms. The results of this outsourcing have been shown to lower costs for Kingsland companies in several different ways, and high costs can potentially bankrupt Kingsland companies. The decision to outsource is rare, except during recessions, when the Kingsland economy is weak. Therefore, Kingsland companies probably outsource their work because doing so helps them avoid bankruptcy.

Which of the following would it be most useful to determine in order to evaluate the argument?
(A) Whether outsourcing is the most effective cost-lowering method available to Kingsland firms.
(B) Whether the firms to which Kingsland companies outsource data-entry tasks are at risk of bankruptcy during recessions
(C) Whether companies in cities other than Kingsland outsource data-entry tasks to foreign firms
(D) Whether the only time foreign firms are available for data-entry tasks is when the Kingsland economy is weak
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms

[Reveal] Spoiler: If you liked it
another good quality question,Press Kudos if you liked it

[Reveal] Spoiler: OE
The argument suggests that Kingsland companies outsource to foreign firms as a cost-saving measure, and that the cost savings are only worthwhile to them during recessions. One assumption the argument makes is that the same options are available to them at all times--the same mix of foreign and domestic options for outsourcing, or perhaps the same availability and cost of hiring employees. While this isn't explicitly an "assumption" question, many "evalulate" questions hinge on assumptions.

The assumption that the same options are available at all times is captured by (D), which is correct. It might seem obvious that, in most real-world situations, foreign firms are available at all times, but once the question raises it as a point that might be in question, you must consider the possibility that it is an assumption left unstated by the argument.

B cannot be the answer. We don't care whether the foreign firms are in recession or out of recession. Even if they are, let them be. Who cares.
Whereas in D, if you answer the question in affirmative then the conclusion sounds fine but if your answer is NO then the conclusion doesn't sounds fine.
Straight shot D.

I agree. The key, IMO, to eliminating B is that we would have to draw a second assumption to demonstrate why the firm seeking outsourcing service would be hurt. We would need to assume that the firm providing the outsourcing service could no longer do so, despite going through bankruptcy, and that no other firm would be available to provide the service. What are your thoughts?
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05 Feb 2014, 01:00
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24 Apr 2014, 23:53
Simply i voted for D; You can outsource only when they are ready to take assignment i.e availability
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14 Oct 2015, 05:27
Hello from the GMAT Club VerbalBot!

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01 Nov 2015, 05:53
Marcab
Quote:
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms

Somebody should explain why option E is wrong.It is already mentioned that they often outsource the work ( so recession is often.does no matter any way). If answer to E is yes then outsourcing can be because of recession.But if it is No then outsourcing is the only option available.
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14 Nov 2015, 01:04
Quote:
(E) Whether domestic firms are able to handle the data-entry tasks outsourced to foreign firms

Somebody should explain why option E is wrong.It is already mentioned that they often outsource the work ( so recession is often.does no matter any way). If answer to E is yes then outsourcing can be because of recession.But if it is No then outsourcing is the only option available.

they talk about bankruptcy and evaluate Kingsland DO that cas of bankruptcy Domestic outsourcing is Irrelevent
Re: Kingsland companies often outsource data-entry tasks to   [#permalink] 14 Nov 2015, 01:04
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