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

It is currently 19 Nov 2018, 09:51

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
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.

Carol Morris wants to own a majority of the shares of the city’s large

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Director
Director
avatar
V
Joined: 30 Jan 2016
Posts: 796
Location: United States (MA)
Reviews Badge CAT Tests
Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

Show Tags

New post 27 Oct 2018, 07:18
1
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

81% (01:22) correct 19% (01:22) wrong based on 67 sessions

HideShow timer Statistics

Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.

_________________

Non progredi est regredi

Director
Director
avatar
G
Joined: 19 Oct 2013
Posts: 502
Location: Kuwait
GPA: 3.2
WE: Engineering (Real Estate)
GMAT ToolKit User CAT Tests
Re: Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

Show Tags

New post 27 Oct 2018, 07:30
1
Akela wrote:
Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.


A strengthen question

It boils down to the issue: Will Morris own the majority of shares given that Azedcorp refused to sell? We need something that provides us a yes answer.

B and E are contenders. But for us to eliminate B we must keep in mind that maybe Azedcorp wants more than what morris had offered?

E gives a more justified reason that Azedcorp has no other option, it will be forced to liquidate whatever assets it has including the shares.

Answer choice E

Posted from my mobile device
Board of Directors
User avatar
P
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 4227
Location: India
GPA: 3.5
WE: Business Development (Commercial Banking)
GMAT ToolKit User Premium Member
Re: Carol Morris wants to own a majority of the shares of the city’s large  [#permalink]

Show Tags

New post 27 Oct 2018, 08:09
Akela wrote:
Carol Morris wants to own a majority of the shares of the city’s largest newspaper, The Daily. The only obstacle to Morris’s amassing a majority of these shares is that Azedcorp, which currently owns a majority, has steadfastly refused to sell. Industry analysts nevertheless predict that Morris will soon be the majority owner of The Daily.

Which one of the following, if true, provides the most support for the industry analysts’ prediction?

(A) Azedcorp does not own shares of any newspaper other than The Daily.
(B) Morris has recently offered Azedcorp much more for its shares of The Daily than Azedcorp paid for them.
(C) No one other than Morris has expressed any interest in purchasing a majority of The Daily’s shares.
(D) Morris already owns more shares of The Daily than anyone except Azedcorp.
(E) Azedcorp is financially so weak that bankruptcy will probably soon force the sale of its newspaper holdings.


Acquisition of all the shares of The Daily held by Azedcorp is the only objective of Morris , and we have to find a solution how that can be achieved !!!

(A) Irrelevant
(B) True but it has been stated that Azedcorp has refused to sell its shares , we are not sure if Azedcorp will be ready to sell the shares at a premium if Azedcorp speculates a rise in share price of the daily more than the premium.
(C) Might be true, but it has been stated that Azedcorp has refused to sell its stake in the daily so it doesn't matter whether there is any more buyer / not.
(D) Morris is the second largest stake holder, what next ? This doesn't guarantee that it can acquire a part of Azedcorp's stake.
(E) If Azedcorp becomes financially weak and is forced to offload its holding then Morris can acquire the shares , then Morris can acquire those/part of those to become a majority stakeholder of the daily.

Answer must be (E)
_________________

Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )

GMAT Club Bot
Re: Carol Morris wants to own a majority of the shares of the city’s large &nbs [#permalink] 27 Oct 2018, 08:09
Display posts from previous: Sort by

Carol Morris wants to own a majority of the shares of the city’s large

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.