Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
May 2211:30 AM EDT
-12:30 PM EDT
Looking for your GMAT motivation to break through the score plateau? Pragati improved her score by massive 160 points with strategic guidance and hard-work! Find out how personalized mentorship and a strong mindset can turn GMAT struggles into success.
May 2010:00 AM EDT
-11:00 AM EDT
The Target Test Prep GMAT Flash Sale is LIVE! Get 25% off our game-changing course and save up to $450 today! Use code FLASH25 at checkout. This limited-time deal won’t last long, so grab your discount now!
May 2108:30 AM PDT
-09:30 AM PDT
How do you get into The Wharton School—one of the most prestigious MBA programs in the world?In this exclusive MBA Admissions Masterclass, former Wharton admissions directors Judith Silverman Hodara and Michel Belden break it down- May 23
08:30 AM PDT
-09:30 AM PDT
Most students struggle to improve their GMAT score even after putting in a lot of effort and multiple attempts. Knowing what to do next in order to succeed can be the game changer in such cases. 
May 2411:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn –1. Learn effective reading strategies 2.Tackle difficult RC & MSR with confidence 3.Excel in timed test environment
May 2408:00 PM PDT
-09:00 PM PDT
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
May 3110:00 AM EDT
-11:59 PM EDT
Get a massive $325 off the TTP OnDemand GMAT masterclass by using the coupon code FLASH25 at checkout. If you prefer learning through engaging video lessons, TTP OnDemand GMAT is exactly what you need.- Jun 10
06:00 AM PDT
-05:30 PM PDT
Register for the GMAT Club Virtual MBA Spotlight fair, the biggest MBA fair of the year. You will have a chance to hear Admissions directors from almost every Top 20 program speak, network with peers, and conveniently attend morning or afternoon sessions.
28 Apr 2025, 00:30
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
54% (01:48) correct
46%
(02:06)
wrong
based on 158
sessions
History
Date
Time
Result
Not Attempted Yet
Bankruptcy is a process that depends on a variety of structural, fiscal, and human variables. These variables are different at every company. Therefore, the pattern of companies declaring bankruptcy should be random. Yet tax records from 2010 demonstrate a pattern: a large number of companies throughout the United States declared bankruptcy at the same time.
Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
mithileshk
Joined: 08 Apr 2025
Last visit: 06 May 2025
Posts: 21
Given Kudos: 21
Location: India
Schools: Booth '26 HBS '26 Sloan '26 Stanford '26 Wharton '26 Haas '26 Tuck '26 Darden '26 Kellogg '26 Stern '26 Duke '26 CBS '26 Johnson (Cornell)
28 Apr 2025, 00:48
Kudos
Bookmarks
Option E
Quote:
Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
- [b]✅ Exactly matches![/b]
- If [b]widespread economic problems (like a recession) affect many companies at once, it explains why many companies failed together.[/b]
- This [b]perfectly matches the 2010 pattern described.[/b]
Bunuel
Bankruptcy is a process that depends on a variety of structural, fiscal, and human variables. These variables are different at every company. Therefore, the pattern of companies declaring bankruptcy should be random. Yet tax records from 2010 demonstrate a pattern: a large number of companies throughout the United States declared bankruptcy at the same time.
Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
28 Apr 2025, 12:05
Kudos
Bookmarks
Bunuel
Bankruptcy is a process that depends on a variety of structural, fiscal, and human variables. These variables are different at every company. Therefore, the pattern of companies declaring bankruptcy should be random. Yet tax records from 2010 demonstrate a pattern: a large number of companies throughout the United States declared bankruptcy at the same time.
Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
Bankruptcy depends on multiple factors like - structural, fiscal and human variables, their combinations and permutations. The outcome is different, and thus each companies pattern declaring bankruptcy is random and different. Which of the following, if true, forms the best basis for at least a partial explanation for the pattern of bankruptcy shown by the tax records?
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
But, in 2010 there emerges a pattern in bankruptcy declaration by large number of companies in USA.
Let’s look into the options :
A. Certain financial problems affect only some types of businesses with particular sets of characteristics unique to their industry.
No Where it’s mentioned, that certain types of businesses were affected in USA by this bankruptcy issue. So, eliminated.
B. Many companies go bankrupt because the economies of the states in which they are located force them to go into gradual but increasing debt.
These are location specific issues. But widespread bankruptcy throughout the USA still remains unanswered. So out of scope.
C. Companies without franchises in more than one country are more likely to declare bankruptcy.
Irrelevant option. Franchises and more likely ( probable event) are two reasons for eliminating this choice.
D. From 2005-2015, government loans and intervention changed the pattern of bankruptcy in the United States.
This options seems convincing but, not strong enough to conclude the end. So let’s hold and look the final option.
E. Patterns of bankruptcy emerge when widespread economic issues affect numerous companies.
This is the answer, wide spread bankruptcy caused due to widespread economic issues, which has impacted numerous businesses. Hence, we can scrap out option D and lock E.
