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24 Jan 2022, 02:30
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
74% (01:47) correct
26%
(02:10)
wrong
based on 243
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A series of glitches within the satellite infrastructure of a cellular phone service company has resulted in service interruptions and several complaints from the company's clients. The company has responded by offering its clients free months of service and other rebates in order to keep its clients from changing to another service provider. Because of this new policy, the company's profits are destined to keep falling for years to come.
Which of the following, if true, taken together with the information above, best supports the conclusion that the company's financial situation will only worsen as long as this new policy is in place?
A) Clients who experience technical difficulties with their cellular phones are unlikely to recommend the service to friends and business associates.
B) Since satellite technology and construction is still a relatively new industry, it's unwise to assume that every satellite will always work perfectly
C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites.
D) ln order to balance out the lost and forfeited revenue, the company will have to lay off at least 10 percent of its employees.
E) The company has no plans to launch any new satellites anytime soon.
Which of the following, if true, taken together with the information above, best supports the conclusion that the company's financial situation will only worsen as long as this new policy is in place?
A) Clients who experience technical difficulties with their cellular phones are unlikely to recommend the service to friends and business associates.
B) Since satellite technology and construction is still a relatively new industry, it's unwise to assume that every satellite will always work perfectly
C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites.
D) ln order to balance out the lost and forfeited revenue, the company will have to lay off at least 10 percent of its employees.
E) The company has no plans to launch any new satellites anytime soon.
24 Jan 2022, 05:21
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Bunuel
Argument is
Service interruption and consumer complaing + to prevent consumer from leaving --> rebates offered --> Profits going to keep falling
We need support it.
A) Clients who experience technical difficulties with their cellular phones are unlikely to recommend the service to friends and business associates. -> argument is about retaining existing customer not gaining new ones --> Wrong
B) Since satellite technology and construction is still a relatively new industry, it's unwise to assume that every satellite will always work perfectly --> this will weaken as people will think that poor connection is part and parcel of this industry and switching to other service provider wont solve issue --> wrong
C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites. --> If money was to be spent on repairing satellites which would have improved the situation at hand, then the situation is going to continue and company will have to keep doling out money --> profits will keep on dwindling -- > CORRECT answer
D) ln order to balance out the lost and forfeited revenue, the company will have to lay off at least 10 percent of its employees. --> laying off employees will lead to decrease in cost and hence may increase profits --> It will weaken conclusion --> Wrong
E) The company has no plans to launch any new satellites anytime soon. --> glitches do not require changing the whole infrastructure. You wont change your new iphone if its sound system goes bad. It simply needs to fix the glitches --> So, there can be many ways to improve the quality --> but still even if they change satellite, the argument is about giving free service and rebates which is causing dwindling profits. --> Thus this is out of scope --> Wrong
ankushsambare
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20 Aug 2026, 10:20
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Hi Bunuel ,
Taking explanation from above for C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites.
--> If money was to be spent on repairing satellites which would have improved the situation at hand, then the situation is going to continue and company will have to keep doling out money
Isn't that a new assumption that we need to make, I mean are we not assuming repairing the satellite will improve the situation ?
Taking explanation from above for C) The money that the company passes on as rebates to its clients whose service has been interrupted had been previously budgeted to be spent on repairing the satellites.
--> If money was to be spent on repairing satellites which would have improved the situation at hand, then the situation is going to continue and company will have to keep doling out money
Isn't that a new assumption that we need to make, I mean are we not assuming repairing the satellite will improve the situation ?
20 Aug 2026, 10:45
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ankushsambare
I’d say there is a small commonsense inference, but not an improper new assumption. If the service interruptions are caused by glitches in the satellite infrastructure, money budgeted for repairing those satellites is naturally intended to address those glitches.
Also, this is a strengthen question, so (C) does not need to prove that repairs would certainly solve the problem. It only needs to make continued problems more likely: diverting repair money to rebates leaves less money available to fix the source of the interruptions.
