Last visit was: 18 Nov 2025, 20:19 It is currently 18 Nov 2025, 20:19
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.
Close
Request Expert Reply
Confirm Cancel
User avatar
Krunaal
User avatar
Tuck School Moderator
Joined: 15 Feb 2021
Last visit: 17 Nov 2025
Posts: 805
Own Kudos:
850
 [1]
Given Kudos: 251
Status:Under the Square and Compass
Location: India
GMAT Focus 1: 755 Q90 V90 DI82
GPA: 5.78
WE:Marketing (Consulting)
Products:
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Nikhil17bhatt
Joined: 25 Aug 2018
Last visit: 31 May 2025
Posts: 70
Own Kudos:
75
 [1]
Given Kudos: 14
Posts: 70
Kudos: 75
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
sushanth21
Joined: 09 Nov 2024
Last visit: 05 Oct 2025
Posts: 82
Own Kudos:
68
 [1]
Given Kudos: 3
Posts: 82
Kudos: 68
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
OmerKor
Joined: 24 Jan 2024
Last visit: 10 Sep 2025
Posts: 129
Own Kudos:
150
 [1]
Given Kudos: 150
Location: Israel
Posts: 129
Kudos: 150
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi everyone :)

The argument assumes that the proposed regulation, by requiring disclosure of data collection practices, will lead users to switch to software that collects less personal data. For this to happen, it must be true that users are not currently fully aware of how much data is being collected.
Let's find an answer choice that matches this prediction.

A- Incorrect. The argument doesn't assume this. It focuses on users switching to less intrusive software, not whether companies that don't collect data will gain significant market share. Eliminate.
B- If users are already fully aware of data collection practices, the regulation would not lead to significant changes in their behavior. Correct.
C- The argument does not address the reasons for opposition to the regulation; it focuses on the potential impact of the regulation. Eliminate.
D- The argument does not assume that only major companies collect significant data; it merely states that these companies would be affected. Eliminate.
E- This choice addresses a policy suggestion unrelated to the argument's assumptions about user behavior. Eliminate.

B is our answer.
User avatar
jkkamau
Joined: 25 May 2020
Last visit: 18 Nov 2025
Posts: 132
Own Kudos:
Given Kudos: 122
Location: Kenya
Schools: Haas '25
GMAT 1: 730 Q50 V46
GPA: 3.5
Products:
Schools: Haas '25
GMAT 1: 730 Q50 V46
Posts: 132
Kudos: 107
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Using pre-thinking, the passage seems to assume that some of the users do not have any knowledge on the amount of data collected by these companies. Now going to the answer choices only choice B speaks about users not knowing how much data is collected hence the correct choice is B
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

User avatar
Sof22
Joined: 02 Jul 2024
Last visit: 05 Nov 2025
Posts: 32
Own Kudos:
Given Kudos: 1
GRE 1: Q168 V163
GRE 1: Q168 V163
Posts: 32
Kudos: 41
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Answer: B


The answer is B because the argument holds only if currently users have a limited understanding of the extent of data collection, while choosing a software. If it is not the case, there won’t be cause-result effect described higher. The disclosure won’t result in people switching to other companies.
User avatar
mpp01
Joined: 13 Dec 2024
Last visit: 08 Jun 2025
Posts: 49
Own Kudos:
48
 [1]
Given Kudos: 9
Location: Spain
Posts: 49
Kudos: 48
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.


The main thing here is wether people are already aware of the data collection that is currently happening, do not overlook this point and get lost by D which is wether big or small companies do collect personal data, which is still an assumption but not as relevant.
User avatar
BatrickPatemann
Joined: 29 May 2024
Last visit: 16 Nov 2025
Posts: 64
Own Kudos:
55
 [1]
Given Kudos: 153
Products:
Posts: 64
Kudos: 55
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?


(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected


The losing market share is an effect of the disclosure of data collection practices, thus the assumption lays on whether customers are not already aware of this fact. Answer (B)
User avatar
SafSin28
Joined: 16 Aug 2022
Last visit: 17 Nov 2025
Posts: 73
Own Kudos:
Given Kudos: 56
Posts: 73
Kudos: 58
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Argument:
Requirement: Software companies must disclose all data collection practices upfront.
If enacted, all software companies, especially major ones, would need to comply.
Conclusion: As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

QS: Assumption

(A) Companies that do not collect personal data will not gain any significant market share from those that do.---> This says some companies collect personal data, while some do not. If these two toes of companies are different, then no matter users choose what, the other lose market share. Keep it.
(B) Some users do not currently understand the extent of data collection involved in the software they use.---> This destroys the argument. These users may not switch if they don't understand the process.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.----> Main reason = to protect major companies? OUT. It is not about protecting them, but why some companies loose market share. OUT.

(D) Only major software companies collect significant amounts of personal data from their users.----> Too extreme. OUT

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.---> We don't know about "consented" users. New info. OUT
User avatar
AVMachine
Joined: 03 May 2024
Last visit: 26 Aug 2025
Posts: 190
Own Kudos:
154
 [1]
Given Kudos: 40
Posts: 190
Kudos: 154
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
As the final conclusion says, "As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share."

Now, as per the passage, for the conclusion to hold, they must not know this information from the start, and by the enactment of this new proposal, they will only know. So,

(B) Some users do not currently understand the extent of data collection involved in the software they use.
avatar
Arunava7393
Joined: 09 Aug 2024
Last visit: 18 Nov 2025
Posts: 98
Own Kudos:
32
 [1]
Given Kudos: 159
Posts: 98
Kudos: 32
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The argument's core is Disclosure -> User Awareness -> Switching to less data-hungry software -> Market Share Loss for data-heavy companies.

The unspoken assumption here is that users are currently unaware of the extent of data collection. If they already knew everything, the disclosure wouldn't change their behavior.

Let's look at the options:

(A) This is the opposite of what the argument suggests. The argument implies that companies collecting less data will gain market share.

(B) This directly addresses the assumption we identified. If users already knew how much data was being collected, disclosure wouldn't change anything.

(C) The argument doesn't discuss the reasons for or against the regulation, only the potential consequences.

(D) The argument mentions "especially major" companies, suggesting they collect a lot of data, but it doesn't exclude smaller companies from also collecting data.

(E) This talks about how disclosure laws should be designed, which is beyond the scope of the argument. The argument focuses on the effect of a specific disclosure requirement, not the ideal form of such a law.

Therefore, the correct answer is B
User avatar
__Poisonivy__
Joined: 24 Feb 2024
Last visit: 08 Apr 2025
Posts: 53
Own Kudos:
56
 [1]
Given Kudos: 2
Posts: 53
Kudos: 56
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
(A) This option contradicts the argument, which assumes that users would prefer software collecting less data. If companies collecting no personal data do not gain market share, the argument’s prediction about user preferences and market shifts would not hold true.

(B) This is a central assumption. If users already fully understand the extent of data collection, disclosing such information would not impact their behavior or market dynamics. The argument hinges on the idea that transparency will change user choices.

(C) This point is irrelevant, as the argument addresses the potential effects of the regulation if implemented, not the motivations for opposing it.

(D) This is unnecessary. The argument does not require a distinction between major or minor companies in terms of data collection; it only assumes that disclosure of practices will affect user behavior.

(E) This is irrelevant. The argument focuses on the impact of disclosure, not the specifics of how the laws should regulate consent.

So, B is the correct opt.
User avatar
miag
Joined: 10 Dec 2023
Last visit: 18 Nov 2025
Posts: 188
Own Kudos:
73
 [1]
Given Kudos: 142
Location: India
Concentration: Marketing, Sustainability
GMAT Focus 1: 675 Q87 V83 DI80
Products:
Expert
Expert reply
GMAT Focus 1: 675 Q87 V83 DI80
Posts: 188
Kudos: 73
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
B) If some users dont understand the extent of data collection involved then only if these practices are disclosed they would switch. If they already know then it wouldnt affect them or cause them to switch. Correct answer.

A) We have no specific information relating to those companies that dont collect any personal data. We only know about less, and even if those who collect less gain some share then the conclusion will hold. This option information is not necessary.
C) Reason is not relevant.
D) This is not necessary. The passage says "all software companies would need to comply, especially major ones". This doesnt need only major software companies to collect personal data.
E) This could be true but its not a must be true. Its not needed for the conclusion to hold. Further, even if this is true, its not clear what impact this will have on the conclusion
User avatar
Nsp10
Joined: 22 May 2023
Last visit: 18 Nov 2025
Posts: 121
Own Kudos:
87
 [1]
Given Kudos: 112
Location: India
Schools: IE Schulich
GPA: 3.0
Products:
Schools: IE Schulich
Posts: 121
Kudos: 87
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The conclusion is - many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.
now let us look at the options

(A) Irrelavant

(B) Perfect what if users already know this and they are already not using such softwares then the Argument must fall apart hence this is the Assumption Author is making.

(C) We are not concerned about why till now we have not adopted

(D) so what if some companies collect not fulfilling the gap

(E) Irrelavant

hence B is the right Answer
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

User avatar
riyasali
Joined: 09 Aug 2024
Last visit: 15 Oct 2025
Posts: 26
Own Kudos:
Given Kudos: 126
Posts: 26
Kudos: 26
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Conclusion : Many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

Evaluating the options:
(A) Companies that do not collect personal data will not gain any significant market share from those that do.
This need to be true to be said that "many users may choose to switch to software that collects less personal data" as there could be companies that do not collect personal data at all.Keep

(B) Some users do not currently understand the extent of data collection involved in the software they use.
This need not be true. Even if the users do understand the extent of data collection involved in the software they use, they may not know the extent of data collection involved in the other softwares. Eliminate

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.
Out of scope. Nowhere aligned with the argument. Eliminate

(D) Only major software companies collect significant amounts of personal data from their users.
The question mentions "especially major ones" not all major software companies. So this need not be a necessary assumption.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.
Out of scope. Nowhere aligned with the argument. Eliminate

A is the correct answer
User avatar
HelpfulChocolate
Joined: 21 Dec 2024
Last visit: 26 Dec 2024
Posts: 21
Own Kudos:
24
 [1]
Given Kudos: 1
GRE 1: Q168 V158
GRE 1: Q168 V158
Posts: 21
Kudos: 24
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

A. Incorrect answer. The premise essentially says that the companies that do collect personal data will lose market share, 180 answer.
B. Correct. Only by assuming that users do not know the extent of data collection, the premise is able to say that people will want to move away from software that collects more personal data.
C. Incorrect answer. This could be true, but the premise is not about whether to adopt a regulation or not.
D. Incorrect answer. They have mentioned "all software companies, including major ones".
E. Incorrect answer. Out of scope.
User avatar
Eswar69
Joined: 12 Jun 2024
Last visit: 28 May 2025
Posts: 35
Own Kudos:
41
 [1]
Given Kudos: 14
Posts: 35
Kudos: 41
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

A proposed regulation requires that software companies must disclose all data collection practices upfront. If enacted, all software companies, especially major ones, would need to comply. As a result, many users may choose to switch to software that collects less personal data, causing some companies to lose significant market share.

The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.

(B) Some users do not currently understand the extent of data collection involved in the software they use.

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.

(D) Only major software companies collect significant amounts of personal data from their users.

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 


A. Incorrect answer. The premise essentially says that the companies that do collect personal data will lose market share, 180 answer.
B. Correct. Only by assuming that users do not know the extent of data collection, the premise is able to say that people will want to move away from software that collects more personal data.
C. Incorrect answer. This could be true, but the premise is not about whether to adopt a regulation or not.
D. Incorrect answer. They have mentioned "all software companies, including major ones".
E. Incorrect answer. Out of scope.
User avatar
Mantrix
Joined: 13 May 2023
Last visit: 17 Nov 2025
Posts: 159
Own Kudos:
121
 [1]
Given Kudos: 34
Location: India
GMAT Focus 1: 595 Q87 V75 DI77
GMAT Focus 2: 625 Q81 V82 DI80
GPA: 9
GMAT Focus 2: 625 Q81 V82 DI80
Posts: 159
Kudos: 121
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
P1: Regulation requires that software companies must disclose all data collection practices, that have to followed by all the companies
P2: As a result, many users may choose to switch to software that collects less personal data.
P3: that would cause some companies to lose significant market share.

Assumption:
The argument above assumes which of the following?

(A) Companies that do not collect personal data will not gain any significant market share from those that do.
It's not about market share. (irreverent)

(B) Some users do not currently understand the extent of data collection involved in the software they use.
yes, that is the assumption, as before users don't know how much data is collected from them, so if they got to knew about it, they will switch to other application and the companies will loses the market share.

Even By negation, some user do currently understand the extent of data Collection, so even if the companies disclose that at what extent they are collection their data, so users have no reason, to stop using application.


(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share.
(we are not seeking the reason for not adoption the regulation)

(D) Only major software companies collect significant amounts of personal data from their users.
it's can't be an assumption, It is now about only significant companies

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected.
It's not about any suggestion
User avatar
Oppenheimer1945
Joined: 16 Jul 2019
Last visit: 14 Nov 2025
Posts: 784
Own Kudos:
639
 [1]
Given Kudos: 223
Location: India
GMAT Focus 1: 645 Q90 V76 DI80
GPA: 7.81
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The argument assumes that, under the proposed regulation requiring upfront disclosure of data collection practices, users will make more informed decisions and might switch to software that collects less personal data. This, in turn, could lead to some companies losing market share, particularly those that collect significant amounts of personal data.

The assumption underlying this argument is that users are not fully aware of how much personal data is being collected by the software they currently use. If users are not aware of the extent of data collection, they might be more likely to switch to alternatives once they become informed, leading to a shift in market share.

Therefore, the correct answer is:

(B) Some users do not currently understand the extent of data collection involved in the software they use.

Ans B
User avatar
Seb2m02
Joined: 03 Oct 2023
Last visit: 03 Nov 2025
Posts: 35
Own Kudos:
40
 [1]
Given Kudos: 139
Posts: 35
Kudos: 40
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I would say answer B

(A) Companies that do not collect personal data will not gain any significant market share from those that do. -> this is not the question

(B) Some users do not currently understand the extent of data collection involved in the software they use. -> Yes, that's why is the proposed regulation was enacted, some user would choose to switch the software they use

(C) The main reason for not adopting the proposed regulation cited above is to protect major software companies from losing market share. -> no information about that

(D) Only major software companies collect significant amounts of personal data from their users. -> no information about that

(E) Disclosure laws should be designed such that software companies are allowed to collect data only if users have explicitly consented to each type of data being collected. -> no information about that
   1   2   3   4   
Moderators:
GMAT Club Verbal Expert
7445 posts
GMAT Club Verbal Expert
234 posts
188 posts