linker wrote:
A prominent investor who holds a large stake in the Burton Tool company has recently claimed that
the company is mismanaged, citing as evidence the company's failure to slow production in response to a recent rise in its inventory of finished products. It is doubtful whether an investor's sniping at management can ever be anything other than counterproductive, but
in this case it is clearly not justified. It is true that an increased inventory of finished products often indicates that production is outstripping demand, but in Burton's case it indicates no such thing. Rather, the increase in inventory is entirely attributable to products that have already been assigned to orders received from customers.
In the argument given, the two boldfaced portions play which of the following roles?
(A) The first states the position that the argument as a whole opposes; the second provides evidence to undermine the support for the position being opposed.
(B) The first states the position that the argument as a whole opposes; the second is evidence that has been used to support the position being opposed.
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
(D) The first is evidence that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that evidence.
(E) The first is evidence that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
Verbal Question of The Day: Day 267: Critical Reasoning
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LINKResponding to a pm:
Quote:
A prominent investor who holds a large stake in the Burton Tool company has recently claimed that the company is mismanaged, citing as evidence the company's failure to slow production in response to a recent rise in its inventory of finished products.
An investor has said that BTC is mismanaged. That their inventory is rising but they have not slowed production. (One would normally assume that if a company has too much inventory (unsold product), they will slow down production and wait for the product to move. Only then will they produce more. Otherwise storage issues etc. are likely to arise.)
Quote:
It is doubtful whether an investor's sniping at management can ever be anything other than counterproductive, but in this case it is clearly not justified.
This sentence means that an investor complaining about management will only be counterproductive. It will only worsen the situation. So it is generally bad. But in this case, it is not even justified.
Then the argument goes on to explain why it is not justified. Though increased inventory does often indicate less demand and more production but it is not so in Burton's case. Their inventory production is against orders received. So increased inventory is increased demand or slower delivery. So current product in inventory is already sold so they should keep producing.
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