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# Analyst: This corporation is currently putting all its efforts into

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General GMAT Forum Moderator
Joined: 15 Jan 2018
Posts: 606
Concentration: General Management, Finance
GMAT 1: 720 Q50 V37
Analyst: This corporation is currently putting all its efforts into  [#permalink]

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24 Feb 2019, 13:28
1
1
00:00

Difficulty:

15% (low)

Question Stats:

78% (01:54) correct 22% (01:53) wrong based on 215 sessions

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Analyst: This corporation is currently putting all its efforts into maximizing short-term profits. Whatever happened to our traditional philosophy of slow, steady growth and emphasis on long-term profitability? One aspect of the problem is seen in simple mathematics. Of our 57 district managers, only 7 have been with the corporation for five years or more. In addition, only 5 of our 16 vice-presidents and only 2 of the 9 members of the board of directors have been with the corporation for five years.

Which of the following conclusions does the author of this passage most probably want the reader to draw?

A. The corporation needs to seek leadership from outside sources if it is to remain profitable in the long run.
B. One of the reasons that the corporation's traditional financial goals have been ignored is that very few of its high-ranking employees have much experience with the corporation.
C. The only reason that the corporation's traditional financial goals have been ignored is that very few of its high-ranking employees have much experience with the corporation.
D. The corporation's traditional financial goals are outmoded.
E. Even though the corporation's traditional financial goals are being ignored, company management has made great strides by bringing in leadership from outside sources.

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Manager
Joined: 17 May 2018
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Location: India
Re: Analyst: This corporation is currently putting all its efforts into  [#permalink]

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26 Feb 2019, 00:57
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The choice is between B and C. But C uses the term "only", whereas it is clearly mentioned in the passage "One aspect of the problem". Hence B is the correct option

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Director
Joined: 28 Jul 2016
Posts: 602
Location: India
Concentration: Finance, Human Resources
GPA: 3.97
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Re: Analyst: This corporation is currently putting all its efforts into  [#permalink]

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21 Apr 2019, 03:20
Kaplan Official Solution:
Step 1: Identify the Question Type

The question asks for a conclusion that can be drawn from the information provided. That makes this an Inference question.

Step 2: Untangle the Stimulus

Unlike argument-based questions, the stimulus in an Inference question is not likely to contain evidence and a conclusion. In fact, the question stem indicates the "conclusion" will be deduced from the information given. So everything here is merely evidence. The author states that the company has shifted away from long-term prospects and toward increasing short-term profits. The author then presents one source of the problem: very few of the top-level employees have been with the company for more than five years.

While some Inference questions are impossible to predict, the information here leads to a relatively predictable conclusion. The phrase "One aspect of the problem" suggests that the relatively short tenure of top-level employees is somehow part of the reason why the company has shifted its focus from long-term profits to short-term profits.

Step 4: Evaluate the Choices

(B) is exactly what the author was implying, and is thus correct.

(A) is not supported. The author already implies that people new to the company are part of the problem, so the author would hardly say the corporation "needs" to bring in more.

(C) is extreme. The lack of experience is said to be "one aspect" of the problem, not the only reason.

(D) is not supported. While the company has shifted away from the traditional values, that does not make them "outmoded." If anything, the author calls the shift a "problem," suggesting the traditional values are preferred.

(E) counters the apparent feelings of our author. The author sees new managers as a "problem," not something to take pride in. In any event, there's no indication those low-experience managers are from "outside sources." Maybe many of them started 3 or 4 years ago as entry-level employees and moved up the ranks quickly.

TAKEAWAY: While not all Inference questions can be predicted, look for opportunities to combine information and see if that combination can produce any logical deductions.
Manager
Joined: 15 Jan 2018
Posts: 60
Analyst: This corporation is currently putting all its efforts into  [#permalink]

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24 Apr 2019, 16:36
For those who don't need a full explanation but were able to limit the answers to B and C.

Analyst: This corporation is currently putting all its efforts into maximizing short-term profits. Whatever happened to our traditional philosophy of slow, steady growth and emphasis on long-term profitability? One aspect of the problem is seen in simple mathematics. Of our 57 district managers, only 7 have been with the corporation for five years or more. In addition, only 5 of our 16 vice-presidents and only 2 of the 9 members of the board of directors have been with the corporation for five years.

Which of the following conclusions does the author of this passage most probably want the reader to draw?

B. One of the reasons that the corporation's traditional financial goals have been ignored is that very few of its high-ranking employees have much experience with the corporation.
C. The only reason that the corporation's traditional financial goals have been ignored is that very few of its high-ranking employees have much experience with the corporation.
Analyst: This corporation is currently putting all its efforts into   [#permalink] 24 Apr 2019, 16:36
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