Find all School-related info fast with the new School-Specific MBA Forum

It is currently 19 Sep 2014, 02:15

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Kingsland companies often outsource data-entry tasks to

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
13 KUDOS received
Director
Director
User avatar
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 564
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 13

Kudos [?]: 137 [13] , given: 75

Kingsland companies often outsource data-entry tasks to [#permalink] New post 10 Oct 2012, 20:36
13
This post received
KUDOS
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

42% (02:39) correct 58% (01:39) wrong based on 274 sessions
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 :-D


[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

_________________

" Make more efforts "
Press Kudos if you liked my post

Intern
Intern
avatar
Joined: 18 Jul 2012
Posts: 4
Location: Viet Nam
Concentration: Entrepreneurship, Operations
GMAT 1: 640 Q44 V34
GPA: 2.85
WE: Business Development (Manufacturing)
Followers: 0

Kudos [?]: 0 [0], given: 3

Re: Kingsland companies often outsource data-entry tasks to fore [#permalink] New post 12 Oct 2012, 19:56
thanks for your post. I narrowed bew A and D, can you explain why A wrong?
thanks so much.
2 KUDOS received
Intern
Intern
avatar
Joined: 15 Oct 2012
Posts: 2
Followers: 0

Kudos [?]: 2 [2] , given: 0

Re: Kingsland companies often outsource data-entry tasks to fore [#permalink] New post 16 Oct 2012, 04:06
2
This post received
KUDOS
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
Manager
Manager
avatar
Joined: 02 Jan 2011
Posts: 201
Followers: 1

Kudos [?]: 34 [0], given: 22

GMAT Tests User
Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 08 Nov 2012, 02:14
I am not convinced that A is wrong and D is correct.
Need expert's help please
1 KUDOS received
VP
VP
avatar
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1096
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 31

Kudos [?]: 265 [1] , given: 67

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 13 Dec 2012, 04:13
1
This post received
KUDOS
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
Manager
Manager
avatar
Joined: 29 Jul 2012
Posts: 189
GMAT Date: 11-18-2012
Followers: 0

Kudos [?]: 30 [0], given: 23

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 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.
_________________

Thriving for CHANGE

Intern
Intern
avatar
Joined: 14 Dec 2012
Posts: 4
Followers: 0

Kudos [?]: 0 [0], given: 19

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 14 Dec 2012, 07:23
I found it quite ok...got it right answer....
Intern
Intern
avatar
Joined: 15 Dec 2012
Posts: 5
Schools: AGSM '15
Followers: 0

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

GMAT ToolKit User
Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 15 Dec 2012, 19:36
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
Expert Post
2 KUDOS received
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 128

Kudos [?]: 621 [2] , given: 62

GMAT ToolKit User GMAT Tests User Premium Member
Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 16 Dec 2012, 04:33
2
This post received
KUDOS
Expert's post
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 :-D


[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.
_________________

Prepositional Phrases Clarified|Elimination of BEING| Absolute Phrases Clarified
Rules For Posting
www.Univ-Scholarships.com

Intern
Intern
avatar
Joined: 11 Dec 2012
Posts: 7
Followers: 0

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

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 09 Jan 2013, 02:58
I would support the first option, as is the case in most of the outsourcing works.

___________________________
employee benefits outsourcing
Intern
Intern
avatar
Joined: 15 Sep 2012
Posts: 19
Followers: 0

Kudos [?]: 2 [0], given: 36

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 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.
Manager
Manager
avatar
Status: GMAT Streetfighter!!
Joined: 22 Nov 2012
Posts: 59
Location: United States
Concentration: Healthcare, Finance
GPA: 3.87
Followers: 0

Kudos [?]: 31 [0], given: 21

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 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.
Manager
Manager
avatar
Status: GMAT Streetfighter!!
Joined: 22 Nov 2012
Posts: 59
Location: United States
Concentration: Healthcare, Finance
GPA: 3.87
Followers: 0

Kudos [?]: 31 [0], given: 21

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 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 :-D


[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?
SVP
SVP
User avatar
Joined: 01 Oct 2013
Posts: 1911
Followers: 259

Kudos [?]: 58 [0], given: 0

Premium Member
Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 05 Feb 2014, 01:00
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Manager
Manager
avatar
Joined: 05 Jun 2012
Posts: 106
Schools: IIMA
Followers: 0

Kudos [?]: 1 [0], given: 60

Re: Kingsland companies often outsource data-entry tasks to [#permalink] New post 24 Apr 2014, 23:53
Simply i voted for D; You can outsource only when they are ready to take assignment i.e availability
_________________

If you are not over prepared then you are under prepared !!!

Re: Kingsland companies often outsource data-entry tasks to   [#permalink] 24 Apr 2014, 23:53
    Similar topics Author Replies Last post
Similar
Topics:
6 Kingsland companies often outsource data-entry ... avohden 4 03 Oct 2013, 11:52
Companies have long relied on the creation of task specific rajatr 0 10 Apr 2013, 23:53
The task force is reviewing the companys hiring practices noboru 5 14 May 2010, 08:38
4 Companies are often torn between the benefits of focusing on agold 20 13 May 2008, 21:20
The task force is reviewing the companys hiring practices gmataquaguy 11 20 Jun 2005, 17:09
Display posts from previous: Sort by

Kingsland companies often outsource data-entry tasks to

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.