Because of the recent transformation of the market. Quore, : GMAT Critical Reasoning (CR)
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# Because of the recent transformation of the market. Quore,

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Intern
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Because of the recent transformation of the market. Quore, [#permalink]

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09 Jan 2005, 04:52
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Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore's production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable.

If the statements above are true, which one of the following must on the basis of them also be true?

(A) It is only Quore's production structure that makes it possible fro Quore to survive the transformation of the market.

(B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years.

(C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy.

(D) Because of the transformation of the market Quore will achieve a productivity increase of 10 percent over the next two years.

(E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.
If you have any questions
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09 Jan 2005, 09:09
"E" for me. Will explain if correct.
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09 Jan 2005, 14:07
(B) for me.

Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years.

As stated from the premises:
10 percent over the course of the next two years, or it will certainly go bankrupt

Just a form of logic like this
A -> B
NOT B -> NOT A
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10 Jan 2005, 08:37
my choice is C. Market changes lead to the need to increase.

even with a 20% inc. the firm can still go bankrupt. the passage did not mention whether a 10% inc will guarantee no bankruptcy.

This one is tricky
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15 Jan 2005, 21:45
Sorry for the delayed post.
The OA is E.
Can someone explain how?
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16 Jan 2005, 05:27
HSWKM wrote:
Sorry for the delayed post.
The OA is E.
Can someone explain how?

OK, I got it now after a second though.

According to the stems:

Because of the recent transformation of the market. Quore, Inc., must increase productivity, 10 percent over the course of the next two years, or it will certainly go bankrupt. In fact, however, Quore's production structure is such that if a 10 percent productivity increase is possible, then a 20 percent increase is attainable.

Let
A = 10% increase
B = bankrupt
C = 20% increase

We have
A <-> ~B (A if and only B)
A -> C

According to (E)

(E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.
Rewrite it as: ~C -> B

Yes, since
~C -> ~A
=> ~A -> B
=> ~C -> B

The "key" is that "10% increase will make it not go bankrupt, if not, it will go bankrupt".
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17 Jan 2005, 16:14
qhc001000

I think you are trying to explain some nice logical pattern here. If you dont mind ,can you please explain the notations.

I am sorry if you or somebody else have already done it earlier.

Thanks
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17 Jan 2005, 18:19
thanks qhoc0010 for the explanation
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19 Jan 2005, 08:07
WHY NOT B (Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years. ): The company might go bankrupt for reasons OTHER than failure to increase productivity. Meeting the productivity increase requirement does not guarantee that the company will stay in business.

WHY E: By not meeting the productivity increase requirement of attainable 20% (i.e. 10% actual and necessary for survivall), the company will definitely go bankrupt.

F.
19 Jan 2005, 08:07
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