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To avoid a hostile takeover attempt, the board of directors

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Joined: 24 Nov 2010
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Re: Wellco company [#permalink] New post 30 Dec 2010, 04:44
feruz77 wrote:
The OA is a bit confusing and questionable, hence, not reliable because in the question stem there is no information about children and a number of them who do not have insurance. We cannot be sure that through compulsory enhancing the number of insured people the revenues will be increased insofar as we do not posses necessary data about children to be given an insurance. E.g. current number of people who have got an insurance from the Wellco company is, say, 10,000 and a number of prospective children to be insured are 1 million, then the option C stands to be correct. But if a number of prospective children to be insured are only 100 then ans C can be easily rejected. In result of such an uncertainty the OA remains debatable.


Feruz, OA doesnt guarantee the success of the plan. But does it make the plan's success more likely than do the other choices. I think, it does.
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Re: Wellco company [#permalink] New post 16 Mar 2011, 04:44
Agree with KnewtonAlex

this is an example of bad not-GMAT-like question.

A is still debatable (rising cost of raw materials may mean everything we can not readily assumes smth to be true if it is not true), while C and E are both may be true.

Answer C readily assumes that there are parents who do not insure their children and thus if the law is encated then Wellco, Inc., will benefit from this change. What if all parents love theri children so much that all of adults insured their kids when they born. Then if the act is enacted, Wellco, Inc., will have 0% or revenue increase.

poorly constructed question.
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Re: Wellco company [#permalink] New post 17 Mar 2011, 11:50
I had E. Dont know why C is the answer.. If 6 months down insurance is made mandatory then this is good enuf reason for any company to take over the insurance compay, which , in the first place , was the idea for buying all 3 companies
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Re: To avoid a hostile takeover attempt, the board of directors [#permalink] New post 22 Feb 2014, 05:46
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Re: To avoid a hostile takeover attempt, the board of directors [#permalink] New post 01 Mar 2014, 02:22
With A, even if chocolate prices may rise, the raw material cost is high, so the rise in chocolate prices may be compensated leaving the company with same revenues as in the past, so I ruled out A.

With C & E I was having same problem that is each talks about only 1 business and leaves out other three. I picked E because it quantified 60% price drop in raw material leading me to think the revenue growth will become strong.

Like few posters, I feel the OA is debatable.
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Re: To avoid a hostile takeover attempt, the board of directors   [#permalink] 01 Mar 2014, 02:22
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