talk2pk wrote:
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 for 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.
Two conditional statements given to us:
If 10% productivity increase does not happen, Quore will go bankrupt.
If a 10 percent productivity increase is possible, then a 20 percent increase is attainable.
Which one of the following is implied too:
(A) It is only Quore’s production structure that makes it possible for Quore to survive the transformation of the market.
We don't know whether Quore's production structure makes it possible for it to survive. All we know is that its production structure is such that if 10% increase is possible, then 20% is attainable too. But is the 10% increase possible, we don't know.
(B) Quore will not go bankrupt if it achieves a productivity increase of 20 percent over the next two years.
All we know is that if 10% productivity increase does not happen Quore will go bankrupt. But if it does achieve the 10% productivity increase (or even 20%), can we say it will not go bankrupt? Unfortunately we can't. The 10% productivity increase is a necessary condition for not going bankrupt. It is not sufficient.
If you have doubts on the validity of this, see here first:
https://www.gmatclub.com/forum/veritas-prep-resource-links-no-longer-available-399979.html#/2012/1 ... tatements/Note the if-then statement: If 10% productivity increase does not happen, Quore will go bankrupt.
If A (no 10% increase), B (go bankrupt)
A implies B
Not B implies Not A
But "Not A" does not imply "Not B".
Not A is "10% (or higher) increase happens"
Not B is "Quore does not go bankrupt"
So 10% or higher increase does not imply Quore will not go bankrupt.
(C) If the market had not been transformed, Quore would have required no productivity increase in order to avoid bankruptcy.
We don't know this for sure. May be something else could have led to a requirement of increase in productivity 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.
We don't know whether Quore will achieve the increase or not.
(E) If a 20 percent productivity increase is unattainable for Quore, then it must go bankrupt.
If a 20% increase is unattainable, it means 10% increase is not possible.
If 10% increase is not possible, Quore will go bankrupt.
This is correct.
Answer (E)