GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 18 Nov 2018, 02:58

### 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

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### How to QUICKLY Solve GMAT Questions - GMAT Club Chat

November 20, 2018

November 20, 2018

09:00 AM PST

10:00 AM PST

The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.
• ### The winning strategy for 700+ on the GMAT

November 20, 2018

November 20, 2018

06:00 PM EST

07:00 PM EST

What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

# Bonuses at DSR Industries cannot be awarded unless profits

Author Message
TAGS:

### Hide Tags

Intern
Joined: 03 Jun 2012
Posts: 44
Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

09 Jun 2013, 23:31
2
00:00

Difficulty:

15% (low)

Question Stats:

78% (01:22) correct 22% (01:41) wrong based on 476 sessions

### HideShow timer Statistics

Bonuses at DSR Industries cannot be awarded unless profits exceed a ten percent
return on stock- holders’ investments in the company. Higher profits mean
higher bonuses. Therefore, bonuses in a year of general economic recession will
be considerably lower than bonuses in a year of peak profits at DSR.

The conclusion above depends on the assumption that

(A) the firm will have relatively low profits in recession years
(B) the amount represented by a ten percent return on stockholders’
investments in the company will increase from year to year
(C) profits rarely exceed a ten percent return on stockholders’ investments in
the company
(D) profits in excess of a ten percent return on stockholders’ investments in the
company are all distributed in the form of bonuses
(E) bonuses at DSR never drop to zero
VP
Joined: 24 Aug 2011
Posts: 1400
Location: India
Concentration: Technology, Strategy
GMAT 1: 760 Q50 V42
GPA: 3.35
WE: Consulting (Computer Software)
Re: Bonuses at DSR Industries cannot be awarded unless profits e  [#permalink]

### Show Tags

12 Jun 2013, 04:18
soniedarshan wrote:
Bonuses at DSR Industries cannot be awarded unless profits exceed a ten percent
return on stock- holders’ investments in the company. Higher profits mean
higher bonuses. Therefore, bonuses in a year of general economic recession will
be considerably lower than bonuses in a year of peak profits at DSR.

The conclusion above depends on the assumption that

(A) the firm will have relatively low profits in recession years
(B) the amount represented by a ten percent return on stockholders’
investments in the company will increase from year to year
(C) profits rarely exceed a ten percent return on stockholders’ investments in
the company
(D) profits in excess of a ten percent return on stockholders’ investments in the
company are all distributed in the form of bonuses
(E) bonuses at DSR never drop to zero

Has to Be A
An easy one, served as a refresher for the brain after solving many 700 level questions
_________________
Manager
Joined: 05 Dec 2014
Posts: 204
Location: India
GMAT 1: 690 Q48 V36
GPA: 3.54
Re: Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

27 Nov 2017, 10:05
Hi option A states that the firm will have relatively low profits in recession years. If the profit is suppose 1 %, which does not exceed a ten percent return on stock- holders??? investments in the company. So, there will be no bonuses to award. But, in the argument we have-Therefore, bonuses in a year of general economic recession will be considerably lower than bonuses in a year of peak profits at DSR. So, option A needs not to be true. Option E makes sense to me. Kindly help.
Manager
Joined: 08 Oct 2016
Posts: 204
Location: United States
Concentration: General Management, Finance
GPA: 2.9
WE: Engineering (Telecommunications)
Re: Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

09 Jan 2018, 22:53
Low profit mean it can be even 5% return which is still profit then why company will give bonus for me it is E kindly help
_________________

Got Q42,V17
Target#01 Q45,V20--April End

Manager
Joined: 08 Oct 2016
Posts: 204
Location: United States
Concentration: General Management, Finance
GPA: 2.9
WE: Engineering (Telecommunications)
Re: Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

09 Jan 2018, 22:54
Although I agree E is using very strong language by saying never
_________________

Got Q42,V17
Target#01 Q45,V20--April End

Intern
Joined: 15 Apr 2018
Posts: 1
Re: Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

24 Apr 2018, 21:22
As it's said in the argument bonuses are relatively lower, We can say that bonused will never drop to zero. What's the flaw in this statement? Why not E?
Director
Status: I don't stop when I'm Tired,I stop when I'm done
Joined: 11 May 2014
Posts: 537
GPA: 2.81
Re: Bonuses at DSR Industries cannot be awarded unless profits  [#permalink]

### Show Tags

25 Apr 2018, 05:15
Top Contributor
himanshuezdi wrote:
As it's said in the argument bonuses are relatively lower, We can say that bonused will never drop to zero. What's the flaw in this statement? Why not E?

Hi,

Profits may not exceed a ten percent return on stock- holders’ investments in the company.

So,we can't say or assume extremely bonus will never drop to zero.

Thanks.
_________________

Md. Abdur Rakib

Please Press +1 Kudos,If it helps
Sentence Correction-Collection of Ron Purewal's "elliptical construction/analogies" for SC Challenges

Re: Bonuses at DSR Industries cannot be awarded unless profits &nbs [#permalink] 25 Apr 2018, 05:15
Display posts from previous: Sort by