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A prominent investor who holds a large stake in the Burton Tool Compan

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A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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25 Jun 2018, 07:07
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GMAT® Official Guide 2019

Practice Question
Question No.:
Online test bank question number : CR00777

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 down 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 a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.

(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.

(C) The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.

(D) The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.

(E) The first and the second each provide evidence against the position that the argument as a whole opposes.

Similar Boldface from OG : LINK

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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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25 Jun 2018, 07:29
Confused between A & B, but more inclined towards B
As second statement could not be a clear evidence but a possibility why the above generalisation (in first bold statement) not applicable in Burton's case

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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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25 Jun 2018, 08:26
2
mnav wrote:
Confused between A & B, but more inclined towards B
As second statement could not be a clear evidence but a possibility why the above generalisation (in first bold statement) not applicable in Burton's case

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Yes, i also believe the answer is A. As per the argument, the first bolded phrase is a general one however it is followed by 'but in Burton's case it indicates no such thing' which is again followed by the explanation of why it is not applicable in the given case.
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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25 Jun 2018, 20:25
Analysis:

P1: A prominent investor who holds a large stake in Burton Tool Company has recently claimed that the company is mismanaged, citing as evidence the company's failure to slow down production in response to a recent rise in its inventory of finished product. (Claim made by the investors)
P2: 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. (Main conclusion author's point)
P3: 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. (Fact that author + investor agree ; fact that author explains in P4)
P4: Rather, the increase in inventory is entirely attributable to products that have already been assigned to orders received by customers. (Author's point : claims to support main conclusion)

NB.
P4 is an function as alternate explanation to P3 (fact)

Generalization can be fact
Position that the argument as a whole opposes (conclusion made by investors)

ANS: A

Please comment on explanations, as I still pretty weak in these type of questions. Thanks.
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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25 Jun 2018, 20:35
Generalization for cause of increased inventory does not apply since it's due to customer orders
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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Updated on: 26 Jun 2018, 08:49
2
hazelnut 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 down 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 a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.

(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.

(C) The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.

(D) The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.

(E) The first and the second each provide evidence against the position that the argument as a whole opposes.

Question Type: Bold face

Premise 1: An investor has claimed that Burton tool company is mismanaged. The evidence presented by him is failure to slow down production & increasing inventory of finished goods.

Premise 2: The author of the argument says in most cases the investors snipping has a positive effect on the strategy of a company, however in this case the investors claims are not justified. The author as a whole opposes the investors claim & provides a common view applicable for the situation and how it is not applicable in burton tool company's case

Conclusion: The argument as a whole thinks that the Burton tool company has valid reason for the inventory.

Analysis: The company strategy for holding inventory is justified with two supporting reasons by the author. The argument as a whole opposes the investors claims & justifies the case for burton tool company with supporting evidences.

(A) The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue. - Correct. The first provides a common view in favor of the opposing argument & the second proves that the first is not applicable in this case.

(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization. - The second does not clarify meaning of first phrase. Incorrect

(C) The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes. Incorrect. The first does not provide support for the conclusion

(D) The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion. - The second is not the conclusion. Incorrect.

(E) The first and the second each provide evidence against the position that the argument as a whole opposes. - Evidence is not against the position that is opposed. Incorrect.

Thanks,
GyM
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Originally posted by GyMrAT on 26 Jun 2018, 01:55.
Last edited by GyMrAT on 26 Jun 2018, 08:49, edited 1 time in total.
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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26 Jun 2018, 03:17
GyMrAt it doesn't seem to be right. Correct answer should be A and not C

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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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26 Jun 2018, 08:50
Yes you are right. A seems to be the correct choice.

Thanks,
GyM
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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30 Jun 2018, 08:18
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 down 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?

First BS - It is a fact - but not the in the direction of thought of the author. (More inventory => production > Demand)
Second BS - it is the reasoning given to support the fact that the conclusion is not as per first BS. (provides situations in which - inventory is huge but production (not greater than) Demand)
Conclusion - inventory has increased but it is okay - this does not imply - (production > Demand)
A is the clear winner.

(A) The first states a generalization that underlies the position that the argument as a whole opposes; the second provides evidence to show that the generalization does not apply in the case at issue.

(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.

(C) The first provides evidence to support the conclusion of the argument as a whole; the second is evidence that has been used to support the position that the argument as a whole opposes.

(D) The first provides evidence to support the conclusion of the argument as a whole; the second states that conclusion.

(E) The first and the second each provide evidence against the position that the argument as a whole opposes.
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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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03 Jan 2019, 01:49
(A) seems correct. First BF provides a view in order to oppose the argument and second BF provide the evidence why first is wrong.
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A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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03 Jan 2019, 01:53
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The answer is A, without any doubt.
Pease give me a kudos
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A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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09 Jun 2019, 11:49
IMO A

BF1 - It is a premise stated in a way it opposes argument as a whole.
BF2- It is a Premise which is supporting the Conclusion of the Stimulus and represent a specific case discussed in the argument.

Top contenders are A and B.

B is out as

(B) The first states a generalization that underlies the position that the argument as a whole opposes; the second clarifies the meaning of a specific phrase as it is used in that generalization.

The second boldface is rather a specific case where the prominent investor's claim stands invalid as inventory is piling up because of the products that have already been assigned to orders received from customers.

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Re: A prominent investor who holds a large stake in the Burton Tool Compan  [#permalink]

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10 Sep 2019, 07:00
I don't understand how the second BF is an evidence rather a clarification.
Can someone please explain this ?

regards,
Arup
Re: A prominent investor who holds a large stake in the Burton Tool Compan   [#permalink] 10 Sep 2019, 07:00
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