Although computer manufacturer X has experienced decreasing sales in t

Question

Although computer manufacturer X has experienced decreasing sales in the last quarter,  stockholders should not sell their shares of the company.  The stock price of a financially troubled company can rise dramatically once those problems are solved.  Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog.

The bolded phrases play which of the following roles in the argument above?

A. The first phrase contains the author’s conclusion and the second phrase contains unrelated information.

B. The first phrase states a position and the second phrase provides evidence to undermine that position.

C. The first phrase states a premise on which the conclusion is based and the second phrase provides the conclusion.

D. The first phrase states the conclusion and the second phrase supports the conclusion with an analogy.

E. The first phrase offers advice and the second phrase draws a contrast between two companies.

CrackverbalGMAT · Accepted Answer

IMO the right answer should be D. When solving bold-face questions, it is important to remember that EVERY statement can only either be a premise or a conclusion (assumptions are unstated). In addition to this, a premise can either support or attack the main conclusion, and the conclusion may or may not be the main conclusion.
This means that every single bold faced statement can really only fit into one of four categories. Once you identify the category for a statement, you can eliminate any option which doesn't match that.

The first statement is clearly what the argument is trying to convince us of, so it's the main conclusion.
The second statement is a premise that supports this conclusion.

A  - Statement 1 works, but not statement 2.  OUT

B  - Statement 1 works, but not statement 2.  OUT

C  - Statement 1 doesn't even work, so we can eliminate easily.  OUT

D  - Statement 1 works, so does statement 2.  CORRECT

E  - "advice" could possibly considered a conclusion, since its a recommended course of action. So we could say that statement 1 works. However, statement 2 doesn't draw any contrast. Hence, E is  OUT

- Matoo

dcummins · Answer

BF statement 2 isn't so much an analogy as much as it is an actual example of the case described. To use an analogy is to compare two situations, not to show an actual example of that situation.

ashok0303 · Answer

I did not get the explanation for D

Posted from my mobile device

Sajjad1994 · Answer

Explanation

If you didn't get this very easy question then probably you should read it after changing the positions of premises and conclusion.

The stock price of a financially troubled company can rise dramatically once those problems are solved. Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog. Although computer manufacturer X has experienced decreasing sales in the last quarter, stockholders should not sell their shares of the company.

Now see below

Information:   The stock price of a financially troubled company can rise dramatically once those problems are solved

Example/Analogy:   Last year, the stock price of steel manufacturer Y rebounded after the company reduced its accounts receivable backlog.

Conclusion:   Stockholders should not sell their shares of the company.

Answer: D

Although computer manufacturer X has experienced decreasing sales in t

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GMAT Critical Reasoning (CR) Questions

Although computer manufacturer X has experienced decreasing sales in t

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